Payroll News

2019 Tax Withholding

W-4 Forms (Employee Withholding Certificates)

In 2018, several changes occurred to federal and state tax laws that will affect UI employees in 2019.

University Human Resources strongly encourages employees to  review the status of their W-4 withholding and exemptions once a year. Recent tax law changes make this review particularly important as we begin the 2019 tax year. Information for completing the W-4s and withholding calculators can be found on the IRS and State of Iowa websites.

Social Security Tax

The Social Security withholding tax rate is 6.2% on the first $132,900 of taxable wages earned in 2019.

Medicare Tax 

The Medicare withholding is 1.45% on the first $200,000 of taxable wages earned in 2019 and 2.35% for wages earned in excess of $200,000 during the 2019 calendar year.

Federal Income Tax Withholding

UI employees should note that federal tax withholding tables will be adjusted for annual inflation in 2019. This site will be updated with information on those tables once they are released. 

Many changes were made to the federal tax withholding tables for 2018 due to the Tax Cuts and Jobs Act. Please refer to the HR notice on how tax reform affected UI employee paychecks starting February 2018 to review those changes.

State of Iowa Income Tax Withholding

The Iowa Department of Revenue has issued new income tax withholding tables for 2019 to align with recent changes in state tax laws. The State of Iowa income tax withholding tables will change effective January 1, 2019.

2006 was the last time that the Iowa withholding tables were updated prior to 2019. Most employees will have a reduction in Iowa tax withheld. Please refer to the Iowa Department of Revenue site for more information.

State of Illinois Income Tax Withholding

The State of Illinois withholding tax rate is 4.95%.