Please note the following payroll-related items which will help you prepare for your 2007 tax withholding and W-2.

Home Address Verification

It is important for all employees to update 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 the Employee Resources tab.  If your address is not correct, e-mail your name, University ID number and new address to hris@drexel.edu as quickly as possible. 

W-4 Updates/Changes

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

The IRS offers help in determining the correct number of withholding allowances in Publication 919.  Neither the Drexel University Payroll Department nor the Tax Office may offer advice on the number of allowances to claim.  Employees wishing to update their allowances may fax a new W-4 to the Payroll Department at 215-895-1615.  Both Publication 919 and Form W-4 are available online at the IRS website, http://www.irs.gov.

Federal Tax Withholding Exemption

If you filed a W-4 claiming exemption from federal tax withholding for 2006, it will expire on February 16, 2007.  We are required to withhold federal tax at the single rate with zero withholding allowances for all pay periods ending after that date if the exemption is not renewed.  To renew the exemption from federal tax withholding during 2007, employees must fax a new W-4 to Payroll at 215-895-1615.  The new 2007 W-4 forms are available online at the IRS website, http://www.irs.gov. 

Advance Earned Income Credit

Employees claiming the Advance Earned Income Credit for 2006 must submit a new Form W-5 if they wish to continue to receive the credit during 2007.  All 2006 W-5 forms expired on December 31.  Employees wishing to renew their Advance Earned Income Credit for 2007 must fax a new W-5 to Payroll at 215-895-1615.  W-5 forms are available online at the IRS website, http://www.irs.gov. 

New Social Security Wage Base for 2007

The Social Security Wage Base for 2007 has been increased to $97,500.  The tax rate remains the same at 6.2%.  All employees subject to Social Security tax who receive wage payments on or after January 1, 2007 will have the tax withheld on the first $97,500 of eligible earnings for the calendar year, regardless of when the services were performed.

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