The following information is being provided to explain the tax calculation for adjunct employees in PaySR.
The Annual Tax Rate Schedule is used for all tax calculations. Taxes are calculated on the amount of contract pay using the tax marital status of single or married and the number of withholding exemption allowances. This amount is then divided by the number of contract periods, and any additional withholding amount reported is then added.
Federal taxes are calculated by subtracting the number of exemptions multiplied by $2,750 (the annual amount per allowance) from the contract pay amount.
New York State taxes are calculated by subtracting the annual deduction allowance of $6,975 for single, or $7,475 for married, from the contract pay amount; then subtract the number of exemptions multiplied by $1,000.
New York City resident taxes are calculated by subtracting the annual deduction allowance of $5,000 for single, or $5,500 for married, from the contract pay amount; then subtract the number of exemptions multiplied by $1,000.
New York City non-resident taxes are calculated by subtracting the annualized pay exclusion amount from the contract pay, if applicable. Multiply the results by.0045, then divide that amount by the number of contract periods.
Yonkers resident taxes are calculated by subtracting the annual deduction allowance of $6,975 for single, or $7,475 for married, from the contract pay amount; then subtract the number of exemptions multiplied by $1,000.
Yonkers non-resident taxes are calculated by subtracting the annualized pay exclusion amount from the contract pay, if applicable. Multiply the results by.005; then divide that amount by the number of contract periods.
Note: Any pre-tax deduction(s) would further reduce taxes withheld (i.e. Supplemental Retirement Annuity).
In the examples below, the employee’s contract pay amount is $6,200.01 (biweekly of $688.89), the contract periods are 9, the marital status is single, and the employee has filed one withholding allowance.
1. Federal Taxes - the annual Federal amount per allowance is $2,750.
| Contract Amount
Minus # of Withholding Allowances X $2,750 Excess Over Income Tax Percentage Divided by Contract Periods: 9 Amount of Federal Tax Withheld |
$ 6,200.01
- 2,750.00 $ 3,450.01 - 2,650.00 800.01 X .15 $ 120.00 / 9 $ 13.35 |
2. New York State Taxes - the amount for New York State annual deduction allowance is $6,975 for single and $1,000 per exemption.
| Contract Amount
Minus Annual Deduction Allowance: Single Minus # of Exemptions X $1,000 No Taxes are Withheld for New York State |
$ 6,200.01
- 6,975.00 - 1,000.00 $-1,774.99 |
3. New York City Resident Taxes - the amount for NYC resident annual deduction allowance is $5,000 for single and $1,000 per exemption.
| Contract Amount
Minus Annual Deduction Allowance: Single Minus # of Exemptions X $1,000 NYC Annual Tax Rate Schedule: Single Divided by Contract Periods: 9 Amount of NYC Tax Withheld |
$ 6,200.01
- 5,000.00 - 1,000.00 $ 200.01 X .02 $ 4.00 / 9 $ .44 |
4. New York City Non-resident Taxes - the NYC annualized pay exclusion amount is $3,000.
| Contract Amount
Minus Annualized Pay Exclusion NYC Non-Resident Tax Rate:.45% Divided by Contract Periods: 9 Amount of Non-resident NYC Tax Withheld |
$ 6,200.01
- 3,000.00 $ 3,200.01 X .0045 $ 14.40 / 9 $ 1.60 |
5. Yonkers Resident Taxes - the amount for Yonkers resident annual deduction allowance is $6,975 for single and $1,000 per exemption.
| Contract Amount
Minus Annual Deduction Allowance: Single Minus # of Exemptions X $1,000 No Taxes are Withheld for Yonkers |
$ 6,200.01
- 6,975.00 - 1,000.00 $-1,774.99 |
6. Yonkers Non-resident Taxes - the Yonkers annualized pay exclusion amount is $3000.
| Contract Amount
Minus Annualized Pay Exclusion Yonkers Non-resident Tax Rate:.50% Divided by Contract Periods: 9 Amount of Non-Resident Tax Withheld |
$ 6,200.01
- 3,000.00 $ 3,200.01 X .005 $ 16.00 / 9 $ 1.77 |
A copy of the Federal, New York State, City of New York, and City of Yonkers tax tables will accompany a hard copy of this bulletin.
Questions regarding this bulletin may be directed to the University Manager of Payroll Systems and Operations at CUNY Central Office.