PAYROLL FREQUENTLY ASKED QUESTIONS
I just used my bank's automated system to see
if my check has been deposited. It's not there – what do I do?
If you used an automated bank service, it is possible that the deposit has been made and the automated service has not yet been updated. Call your financial institution and request to speak to someone in the electronic commerce area. In many cases, a staff member has more up-to-date information than the automated applications.
If the bank employee cannot locate the deposit, contact your payroll representative. He or she has access to records that indicate a trace number for the deposit verifying that the deposit was made. Bank mergers and changes in account information (initiated by either the employee or the Comptroller's Office when mergers occur) cause the pre-note or test run of the new account/routing information. One payroll warrant will be produced during this cycle and then your direct deposit will resume. Your payroll representative can assist you in determining if the pre-note has occurred. Return to Top
Both my co-worker and I are on the same pay schedule and have direct
deposit. Why does he get his pay deposited first?
Individual financial institutions vary in their procedures for posting electronic deposits. Some make deposits at midnight of the scheduled pay date. The Comptroller’s Office requires that the deposits are made on the scheduled pay date. Return to Top
How should I complete my W-4 form? How many withholding exemptions
do I need?
The IRS provides a worksheet to assist taxpayers in the completion of the W-4 form located at the IRS website www.irs.gov .
These instructions accompany the W-4 form that can be found on the IDOT forms site.
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What is the difference between legal and mailing address and why do
I need to provide both?
For most employees, mail is received at the same place that you live. In those cases, only a mailing address is necessary. For others, mail is collected at a post office box, or another address. For those instances, a street address should be placed in the legal (or voting) address in addition to the mailing address information. As noted in the W-4 instructions from the IRS, the form requires the address data of street or rural route.
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I would like to change my W-4 form in order to withhold a particular
amount from my paycheck for federal taxes. How do I do that?
Taxes are withheld at the rates indicated on the IRS Publication 15 T for Employers, Table for Percentage Method of Withholding, for semi-monthly pay periods. The IRS does not allow a taxpayer to request a flat percentage rate for federal tax withholding. For help with determining how to complete your W-4, please refer to the IRS Tax Withholding Estimator which can be found at https://www.irs.gov/individuals/tax-withholding-estimator .
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How is federal tax withholding figured?
Wages subject to federal tax withholding are made up of Gross Wages (Base Pay plus Overtime) + Other Compensation subject to withholding (Vehicle Days at $1.50 per commute) + Group Insurance Attributable Income (amount of group term-life insurance benefit over $50,000 subject to withholding). Items then deducted from taxable wages are: Tax credits from Step 3 of form W-4 for 2020 or greater Form W-4's, or $179.00 per withholding exemption for 2019 or prior Form W-4's (noted on W-4 form), Deferred Compensation, Non-Taxable Benefits (premiums for group health, dental and life insurance under $50,000), Flexible Spending, Deducted Retirement, Tax Deferred Retirement Service Purchases, and Commuter Savings Plan deductions. Once the amount subject to withholding is determined, refer to the Percentage Method of withholding for semi-monthly pay periods in the IRS Circular E for Employers.. Return to Top
How is state tax withholding figured?
Refer to the description above for wages subject to federal tax withholding. Items then deducted from taxable wages are: $115.63 per withholding exemption (noted on W-4 Form), $41.67 for each blind/over 65 additional state exemption, Deferred Compensation, Non-Taxable Benefits (premiums for group health, dental and life insurance under $50,000), Flexible Spending, Deducted Retirement, Tax Deferred Retirement Service Purchases, and Commuter Savings Plan deductions. Once the amount subject to withholding is computed, apply a 4.95% rate to determine withholding amount.
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What is the federal tax withholding rate for payment of lump sum for
sick and vacation time?
The supplemental payment withholding rate applies to payment of lump sum for sick and vacation time. The current rate of withholding required by the IRS for such payments is 22%. Return to Top
Why is federal withholding different when I am paid only overtime
in a check?
The supplemental payment withholding rate applies to payment of overtime when not combined with regular wages. The current rate of withholding required by the IRS for such payments is 22%. Return to Top
What is the current FICA (Social Security) rate and is there a maximum
that can be withheld?
The withholding for FICA (Social Security) is based on two percentages: the OASDI rate is 6.2% of total taxable compensation and is applicable to $168,600 of wages for 2024. Wages in excess of $168,600 are not subject to OASDI. The Medicare (Hospital Insurance) portion of FICA is 1.45% for the first $200,000 in wages. The tax rate for wages exceeding $200,000 is 2.35%. All total taxable compensation is subject to withholding for Medicare (Hospital Insurance). Return to Top
What is the basis of my FICA wages or total compensation subject to
FICA taxes?
The amount of wages subject to FICA withholding is made up of: Gross Wages (Base Pay plus Overtime) + Other Compensation subject to withholding (Vehicle Days at $1.50 per commute) + Group Insurance Attributable Income (amount of group insurance benefit over $50,000 subject to withholding). Once the total is obtained, subtract deductions for flexible spending, non-taxable benefits and commuter savings plan deductions. The remainder is subject to the rates noted in the answer above. Return to Top
Why are my Social Security Wages less than my Taxable Wages on my
W-2 form?
If you review the responses to the two questions above "How is federal tax withholding figured?" and "What is the basis of my FICA wages?" you will have your answer. There are several more items that reduce taxable wages for federal income tax (such as deferred compensation, deducted retirement, and tax deferred retirement service purchases). The only items that reduce the amount subject to FICA are flexible spending, non-taxable benefits and commuter savings plan deductions. Return to Top
How does my operation of a state vehicle for personal commuting purposes
affect my paycheck?
The IRS rules require an employer to assess a charge of $1.50 per commute for the value of use of employer's automobile for personal commuting purposes. The amount of $1.50 per commute is added into taxable gross wages. This addition causes the taxable gross wages to increase and increases the amount of tax withholding for the employee. See IRS information on Fringe Benefits for the details on the commuting rule at. www.irs.gov.
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Why am I taxed on my amount of group term-life insurance benefits
over $50,000?
The IRS requires employers to include group term-life insurance benefits over $50,000 as additions to taxable gross wages. The amount added into taxable wages is called Group Insurance Attributable Income (GIAI). Your payroll representative can obtain this figure for you from payroll records. See IRS information on Fringe Benefits for further details at www.irs.gov.
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Why did my life insurance deduction change? Why was there a change
in my health insurance premium?
Pay increases and differences in life insurance rates can result in changes to life insurance deductions. Have you recently celebrated a birthday? Rates increase with advancing age. Health insurance premiums can be affected when you add or remove a dependent, or if premium rate changes occur.
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My life has recently changed due to an event (such as marriage, divorce,
birth of child, moving residence, child support order requiring insurance
coverage of dependent, etc). Must I tell my payroll or insurance contact?
Nearly all life changing events require notice to both payroll and insurance representatives. Completion of new W-4 cards, requests for changes in insurance coverage due to a qualifying event, update of beneficiary forms -- all need to be considered in most changes. Check in with your payroll and insurance representative to ensure that all required paperwork is completed.
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How are my retirement deductions calculated?
For Regular formula employees, refer to the total compensation amount defined in the federal tax withholding question and apply either a 4% rate (members with FICA) or 8% (members who are not in FICA).
For Alternative formula employees, refer to the total compensation amount defined in the federal tax withholding question and apply either a 8.5% rate (members with FICA) or 12.5% rate (members who are not in FICA). Return to Top
How can I tell if I am paying union dues?
The bottom portion of your pay stub will display a message "union dues" for members.
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What does "other insurance" represent on the bottom portion of my
pay stub?
The state-sponsored life insurance deduction is combined with any private insurance policies you have purchased via payroll deduction and this total amount is displayed as "other insurance."
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Why is the amount for my child support deduction greater than the
court ordered amount?
The Comptroller's Office requires that a $2.50 fee per court order be paid by the employee to pay for the administrative cost of handling these payments. Another factor is the conversion if order amounts are set as bi-weekly (26 pay periods a year) since IDOT pays on a semi-monthly basis (24 pay periods a year). In such cases, the order amount is re-calculated to ensure that the annual amount of deductions is the same.
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How is the amount of my garnishment calculated?
The basis for the amount calculated for garnishments is gross wages minus retirement deduction. The result of that computation is multiplied by 15%. If you have a child support deduction, the amount of child support payment is deducted from the calculated garnishment amount. In some cases, no garnishment deduction is taken if the amount of child support obligation exceeds the garnishment payment. Return to Top
Why did I get a letter from the Comptroller's Office about reducing
my check?
State agencies have the statutory right to file an offset claim against payments made through the Comptroller's Office. So if you owe money to the Department of Revenue, the Department of Healthcare and Family Services, the Department of Human Services, the Department of Employment Security, the Illinois State Scholarship Commission, or another state agency, the Comptroller's Office may deduct an amount (dictated by statute) from your check to send to the respective agency. You will be notified in writing by the Comptroller's Office and your pay date may be delayed; your direct deposit may be interrupted by the intercept. The letter provides contact information that you may pursue in order to request alternate arrangements for payment to the agency. The Department of Transportation is not able to stop an offset order issued by another agency. The Comptroller's Office handles the offsets and any release of an offset claim, in coordination with the originating state agency.Return to Top
I am leaving state employment and want to take the maximum allowable
deduction of Deferred Compensation from my lump sum payment. How do I know
how much I can take?
There is an important consideration for a separating employee who wishes to make a large deferred compensation deduction from his/her lump sum payment. If the deduction is too large after computing FICA and taxes, the deferred compensation will not be taken. Payroll representatives can assist you in figuring the net pay of the payment: multiply amount subject to FICA (gross amount of lump sum minus flexible spending deduction if applicable) by 7.65% (if FICA OASDI max has been reached for year, use 1.45% rate). Then the federal (22% flat rate) and state (4.95% after figuring state exemptions) withholding can be figured. The end result must be a positive amount in order for the deduction to be successful.
If other deductions occur (such as SERS Retirement Contributions on Lump Sum Pay for Sick Leave Vacation and Personal Days - Form 1404, or SERS Time Pay Agreements), they must be factored in when figuring the maximum withholding amount as well. If all deductions cannot be taken, the SERS deductions will remain, and the deferred compensation deduction will be dropped from processing. Return to Top
What does "Other Comp" on my pay stub represent?
This field includes other compensation items that increase taxable wages but are not paid as additions to gross wages. This includes things like GIAI or Group Insurance Attributable Income and vehicle commutes.
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Please call your payroll representative if other questions arise that are not addressed here.