Exclamation point iconSee the the Tax Cuts and Jobs Act page for information on the redesigned 2020 Form W-4.

A tax is a levy imposed upon an individual by the federal or state government to fund public expenditures. A failure to pay taxes is usually punishable by law.

Types of Taxes

Federal Income Taxes

Federal income taxes levied by the IRS on the annual earnings of an individual.

Ball State uses the federal Form W-4 to calculate federal taxes on each paycheck.

For assistance completing or updating your W-4, please use the IRS Withholding Calculator.

Federal Taxes are reported annually on Form W-2.  What's new on Form W-2 for 2020?  

  • Box 14 will now include informational details, if applicable, about amounts paid to you as qualified sick leave wages (emergency paid sick leave act “EPSLA” in line 14E) or qualified family leave wages (Emergency Family and Medical Leave Expansion Act “EFMLEA” in line 14F) under the Families First Coronavirus Response Act as required by the Internal Revenue Service.
  • If you have self-employment income in addition to wages paid by Ball State University, and you intend to claim any qualified sick leave or qualified family leave equivalent credits, you must report the qualified sick leave or qualified family leave wages on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with your income tax return and reduce (but not below zero) any qualified sick leave or qualified family leave equivalent credits by the amount of these qualified leave wages. If you have self-employment income, you should refer to the instructions for your individual income tax return for more information.


State and local taxes vary by state. Ball State uses the Indiana WH-4 to calculate your Indiana state and local taxes on each paycheck.

If you live or work outside of Indiana, please see below.

A reciprocity agreement between Indiana and another state means there will be no Indiana state tax withheld if the employee completes the Indiana Certificate of Residence form (aka IN Form WH-47).

Eligible States of Residency

The state of Indiana has reciprocity agreements with:

  • Kentucky
  • Michigan
  • Ohio
  • Pennsylvania
  • Wisconsin

Local Taxes

The established reciprocity agreements do not exempt an employee from Indiana local tax; therefore, county tax will be withheld.

See Indiana’s county tax rates.

Employees who work or perform services solely outside the state of Indiana are not subject to Indiana tax withholding. They are subject to the tax withholdings for the state where they work or services are solely performed. To obtain the proper state withholding forms, please contact the Office of Payroll and Employee Benefits and complete the Employee Work Location Certification form.

How to Calculate Tax Withholdings

Please see the table below to find information about state and local taxes based on the state where you live or work.

State State Tax
Alabama Alabama state tax
Arizona Arizona state tax
Arkansas Arkansas state tax
California California state tax
Colorado Colorado state tax
Connecticut Connecticut state tax
Delaware Delaware state tax
Georgia Georgia state tax
Hawaii Hawaii state tax
Idaho Idaho state tax
Alabama Illinois state tax
Indiana Indiana local tax
Iowa Iowa state tax
Kansas Kansas state tax
Kentucky Kentucky state tax 
Louisiana Louisiana state tax 
Maine Maine withholding tax
Maryland Maryland state taxes
Massachusetts Massachusetts state tax 
Michigan Michigan state tax
Minnesota Minnesota state tax
Mississippi Mississippi state tax
Missouri Missouri state tax
Montana Montana state tax 
Nebraska Nebraska state tax
New Jersey New Jersey state tax
New Mexico New Mexico state tax
New York New York state tax
North Carolina North Carolina state tax
North Dakota North Dakota state tax
Ohio Ohio state tax
Oklahoma Oklahoma state tax
Oregon Oregon state tax
Pennsylvania Pennsylvania state tax
Rhode Island Rhode Island state tax
South Carolina South Carolina state tax
Utah Utah state tax
Vermont Vermont state tax
Virginia Virginia state tax
District of Columbia
Washington D.C.
District of Columbia tax 
West Virginia West Virginia state tax
Wisconsin Wisconsin state tax

Social Security and Medicare (also known as FICA) are required to be withheld on all employees unless they meet the student or nonresident alien exemption for FICA taxes.

FICA Tax Rates for 2023

Old Age, Survivor, and Disability Insurance and Supplemental Security Income

  • Social Security = 6.2 percent of taxable wages up to a limit of $160,200
  • Medicare = 1.45 percent of taxable wages with no limit
  • Additional Medicare = 0.9 percent of taxable wages over $200,000 See a full list of rates and limits.

A student employee enrolled in a certain number of credit hours is considered exempt from FICA taxes. The chart below shows how many credit hours students must take each semester, depending on their status as an undergraduate or graduate student. See the procedure for applying the student FICA exemption (PDF).

Credit hours per semester required for FICA Exemption
Fall Spring Summer
Undergraduate Student 6 or more

6 or more

6 or more

Graduate Student

5 or more

5 or more

5 or more

All nonresident alien employees are exempt from FICA taxes.