GAP NO. 101.4
Payroll Deductions

I.	General
II.	Voluntary Deductions
III.	Involuntary Deductions
IV.	Mandatory Withholdings
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I. GENERAL

Deductions are subtracted from an employee's gross pay based on established rates and employee requests for voluntary deductions. For payroll purposes, deductions are divided into three types:

• Voluntary deductions
  
  
• Involuntary deductions: traffic fines, garnishments, cash advances
  
  
• Mandatory Withholdings: taxes

 

II. VOLUNTARY DEDUCTIONS

Voluntary deductions are amounts which an employee has agreed to have subtracted from gross pay. Examples are group life insurance, health insurance, U.S. Savings Bonds, United Way contributions, and Credit Union loans and savings.

When a new employee is hired, in orientation the applicable benefits are explained. The employee submits all paperwork to the HRIC, they then complete a Deduction Authorization Notice based on the employee's choice of benefits.

To make changes (add, change, or delete) to voluntary deductions, the employee must contact the office responsible for that deduction (see list below). If a deduction does not appear on an employee's payroll check after sufficient time for processing, the employee should contact the office responsible for that deduction.

Following is a list of the most common voluntary deductions and the responsible office:

Deduction		Responsible Office
Auxiliary Faculty Charge		Auxiliary Services
Bright Horizons		Bright Horizons
D.U. Credit Union - Loans & Savings Dep.		Duke Credit Union
Dental Insurance		HRIC
Dependant Care Reimbursement		HRIC
DRH Foundation		Durham Health Partners
DRH Volunteer Sales (jewelry, books, etc.)		DRH Volunteer Services
DRH Wellness Institute		Wellness Institute
Duke Card Flex		Duke Card Office
DUPAC		Duke Center for Living
Employee Recreation Fees		Duke Card Office
Faculty Club		Faculty Club
Fidelity (Retirement)		HRIC
Gifts-Duke		Alumni & Development Records
Greater Piedmont Credit Union		Greater Piedmont Credit Union
Health Insurance		HRIC
Health Reimbursement		HRIC
Hospital Auxiliary Sales (jewelry, books)		Hospital Auxiliary
Hospital Bills		PRMO
Live For Life		Live for Life
Long Term Care		HRIC
LTD Enhancer		HRIC
NC Mutual Univ. Life		HRIC
Optical Wear		Duke Eye Center
Parking Fees (Campus)		Parking Services
Parking Fees (Medical Center)		Med Center Parking & Traffic Office
Personal AD&D		HRIC
Personal Casualty (Met Pay)		HRIC
Pharmacy		Pharmacy
Post Retirement Life Insurance		HRIC
Scudder (Retirement)		HRIC
Student Fees		Bursar's Office
Supplemental Life		HRIC
TIAA-CREF (Retirement)		HRIC
Uniform Rental		Employee's Department
United Way		Staff & Family Programs
Universal Life - Locked		HRIC
Universal Life Holroyd		HRIC
US Savings Bonds		Payroll Office
Valic (Retirement)		HRIC
Vanguard (Retirement)		HRIC
Voluntary LTD (Hartford)		HRIC
Voluntary STD (Hartford)		HRIC
Whole Life - Locked		HRIC
YMCA		YMCA

 

III. INVOLUNTARY DEDUCTIONS

Traffic Fines
Issued by University Traffic & Parking, are withheld from an employee's payroll check because the employee failed to either pay the fine or file a Notice of Appeal. If an employee fails to do either before the end of the stipulated ten (10) day period, the fine will be deducted from the employee's next payroll check. For questions concerning traffic fines, contact University Traffic & Parking.

Garnishments
Amounts which the Corporate Payroll Office is required by Federal or State law to withhold from an employee's payroll check to satisfy an employee's personal obligation: federal, state, county or city tax levy, court ordered child support payments, or court ordered in personal bankruptcy proceedings. Questions regarding garnishments should be addressed to the agency issuing the document.

Travel or Cash Advance
Deductions may be made when an employee does not clear his/her advance within the thirty day period after the trip or event completion. See GAP 200.023, Travel Advances for more information.

 

IV. MANDATORY WITHHOLDING - TAXES

Social security (FICA) taxes are withheld from ALL employees' payroll checks based on the published tax rates and wage base. There are only two exceptions:

1. Currently registered, full time Duke students are exempted from FICA tax.
2. F-1 and J-1 visa holders who are Non-Residents for tax purposes and have not met the substantial presence test are exempted from FICA tax.

The Corporate Payroll Office is also required to withhold Federal and State income taxes from every employee's payroll check. The amount of withholding is based on the number of exemptions that the employee has claimed on tax forms W-4 and NC-4 and the current year's federal and state tax tables. Employees should periodically evaluate their tax situation and complete new W-4 and NC-4 tax forms if their tax status has changed. These forms are available on the web from the HR webpage or the Payroll webpage. Employees of Duke are not allowed to make tax recommendations.

Employees may request that a fixed amount of federal and/or state income tax be withheld in addition to their regular withholding. This fixed federal or state tax deduction may be for any amount and may be discontinued at any time by completing a new W-4 or NC-4 form.

If an employee had no tax liability last year and expects no tax liability this year, the employee may claim "Exempt" from federal and state tax withholdings by filing forms W-4 and/or NC-4 and indicating tax-exempt for the calendar year. The W-4 and NC-4 forms automatically expire in mid-February the following year. If the employee does not file a new W-4 and/or NC-4 form, the tax exemptions default to zero with a "single" marital status.

Note that the Corporate Payroll Office submits copies of W-4 and NC-4 forms to the Internal Revenue Service and the N.C. Department of Revenue when:

• an employee claims more than 10 exemptions
• an employee claims "exempt" from tax withholding and has earnings greater than $200 per week

 

GAP History
Issued:	March 1996
Revised:	November 2003