GAP 101.4, Payroll Deductions
Deductions are subtracted from an employee's gross pay based on established rates as well as employee requests for voluntary deductions. For payroll purposes, deductions are divided into two types:
- Voluntary deductions
- Involuntary (mandatory) deductions: taxes, garnishments, and fines
Voluntary deductions are amounts which an employee has elected to have subtracted from gross pay. Examples are group life insurance, healthcare and/or other benefit deductions, Credit Union deductions, etc. Additionally, voluntary deductions can be taken out of an employee’s gross pay as a pre-tax deduction, a tax deferred deduction, or a post-tax deduction.
Pre-tax deductions reduce the federal, state, and FICA taxable gross amounts. Tax deferred deductions reduce the federal and state taxable gross amounts. Post tax deductions are withheld after all taxes have been calculated and withheld.
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 pay statement after sufficient time for processing, the employee should contact the office responsible for that deduction.
The most common voluntary deductions and the responsible office are listed below. Pre-tax deductions are indicated with an asterisk (*) and tax deferred deductions are highlighted with a number symbol (#). All other deductions are taken post-tax.
|Auxiliary Faculty Charge||Duke Card Office|
|Duke Credit Union||Duke Credit Union|
|Dental Insurance*||Human Resource Information Center|
|Dependent Care Reimbursement*||Human Resource Information Center|
|DHRH Guild||The Guild at DHRH|
|DRH (jewelry, books, etc.)||DRH Auxiliaries|
|Duke Card Flex||Duke Card Office|
|Employee Recreation Fees||Duke Card Office|
|Faculty Club||Faculty Club|
|Fidelity (Retirement)#||Benefits Administration|
|Gifts-Duke||Alumni & Development Records|
|Greater Piedmont Credit Union||Greater Piedmont Credit Union|
|Health Insurance*||Human Resource Information Center|
|Health Care Reimbursement*||Human Resource Information Center|
|Hospital Auxiliary Sales (jewelry, books)||Hospital Auxiliary|
|Hospital Bills||Patient Revenue Management Organization|
|Live For Life||Live for Life|
|Long Term Care||Human Resource Information Center|
|LTD Enhancer||Human Resource Information Center|
|NC Mutual Univ. Life||Human Resource Information Center|
|Optical Wear||Eye Care Associates (external vendor)|
|Parking Fees (Campus & Medical Center)*||Parking Services|
|Personal AD&D||Human Resource Information Center|
|Personal Casualty (Met Pay)||Human Resource Information Center|
|Post Retirement Life Insurance||Human Resource Information Center|
|Scudder (Retirement)#||Benefits Administration|
|Student Fees||Bursar's Office|
|Supplemental Life||Human Resource Information Center|
|TIAA-CREF (Retirement)#||Benefits Administration|
|Universal Life Holroyd||Human Resource Information Center|
|Valic (Retirement)#||Benefits Administration|
|Vanguard (Retirement)#||Benefits Administration|
|Voluntary LTD (Hartford)||Human Resource Information Center|
|Voluntary STD (Hartford)||Human Resource Information Center|
Garnishments represent amounts which Corporate Payroll Services is mandated by Federal or State law to withhold from an employee's pay to satisfy an employee's personal obligation. Examples include: federal, state, county or city tax levies, court ordered child support payments, or court ordered bankruptcy. Questions regarding garnishments should be addressed to the agency issuing the document.
- Currently registered, full time Duke students, whose primary roles are students and not employees, are exempt from FICA tax.
- F-1 and J-1 visa holders who are Non-Residents for U.S. tax purposes and have not met the substantial presence test are exempt from FICA tax.
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 processing a change using the Duke@Work module.
Employees who need assistance determining withholding requirements should contact individual tax accountants. Other Duke personnel are not permitted to administer tax advice.
If an employee does not file a W-4 and/or NC-4 form, the tax exemptions default to zero withholding allowances and "single" marital status.
Note: The Corporate Payroll Service’s team is required to submit copies of W-4 and NC-4 forms to the Internal Revenue Service and the N.C. Department of Revenue when the following conditions are met:
- an employee claims more than 10 exemptions
- an employee claims "exempt" from tax withholding
In each case, paper forms W-4 and NC-4 must be submitted to the Corporate Payroll Services team for processing.