IMPORTANT PAYROLL-RELATED INFORMATION FOR 2008

Home Address Verification

All employees are responsible for maintaining and updating their home addresses that appear on DrexelOne, http://one.drexel.edu/.  Your Employee Home Address is located under the "View Address(es) and Phone(s)" link in the Personal Information section of DrexelOne.  To update your Employee Home Address, e-mail your name, University ID number and new address to hris@drexel.edu by December 31, 2007 so that it is reflected correctly on your W-2.  Please immediately update your address for changes throughout the year.

W-4 Updates/Changes

Please review your W-4 Tax Exemptions/Allowances via DrexelOne (“Tax Forms” link under the Employee Services section).  Changes in your marital status, number of dependents, income or itemized deductions may require you to change your federal tax withholding by updating your W-4.  Submit a revised W-4 to the Payroll Department anytime during the year as these changes occur, or fax the form to Payroll at (215) 895-1615.   

The Internal Revenue Service (“IRS”) offers assistance for determining the number of withholding allowances in Publication 919.  Neither the Payroll Department nor Tax Office can advise employees on the number of allowances to claim.  Both Publication 919 and Form W-4 are available online at the IRS website at http://www.irs.gov.

Federal Tax Withholding Exemption

If you filed a W-4 claiming exemption from federal tax withholding for 2007, it will expire on February 16, 2008.  For all pay periods after that date, we are required to withhold federal tax at the single rate with zero withholding allowances if the exemption is not renewed.  Employees who wish to remain exempt from federal tax withholding during 2008 must submit a new W-4 to Payroll, or fax the form to (215)895-1615, by January 31, 2008.  The new 2008 W-4 forms will be available online at the IRS website at http://www.irs.gov in early January 2008. 

Advance Earned Income Credit

Employees who claim the Advance Earned Income Credit for 2007 must submit a new Form W-5 to receive the credit in 2008.  All current W-5s expire on December 31, 2007.  To renew the Advance Earned Income Credit for 2008, submit a new W-5 to Payroll, or fax the form to (215) 895-1615, by December 31, 2007.  New W-5 forms will be available on the IRS website at http://www.irs.gov in December.

New Social Security Wage Base for 2008

The IRS has increased the Social Security wage base for 2008 to $102,000.  The tax rate remains the same at 6.2%.  All wages paid on or after January 1, 2008 are subject to Social Security withholding on the first $102,000 of eligible earnings for the calendar year, regardless of when the services were performed.

For assistance or more information, please contact the Payroll Department at payroll@drexel.edu or (215) 895-2885.