Payroll Tax Guide: US Citizens & Resident Aliens 

The information provided in this guide is intended to assist UCSC employees, who are US citizens or resident aliens, with payroll tax issues. Please contact the Payroll Help line at 459-2488 with questions or locate your representative directly.

  1. Tax exemption from withholding W-4/DE-4
  2. Withholding information for retirees
  3. IRS Form W-2 "Wage and Tax Statement"

Appendixes
What to KnowFilter
Tax exemption from withholding W-4 / DE-4

Tax exemption from withholding W-4 / DE-4

  • To claim exemption from Federal and State withholding tax, file a W-4 form at the beginning of each year.
  • Tax will be withheld at the maximum rate if the employee fails to file a new W-4 timely.

IRS Rules for claiming exemption from withholding

All of the following IRS requirements must be met in order to claim exemption from withholding:

  • You had no income tax liability last year and expect none this year
  • You cannot claim exemption from withholding if:
    • Your income exceeds $950 and includes more than $300 of unearned income (for example, interest and dividends) and another person can claim you as a dependent on their tax return.

    Updating your W-4 Online

    If you want to continue exempt status, you must update your W-4 on the AYSO website.

    • You can usually begin using the AYSO to update or renew your exempt status on January 5th.
      • Updates and renewals must be completed by January 14th.
    • If you claim exempt status and your wages are expected to exceed $200 per week, the Internal Revenue Service may request submission of your record of W-4 status.

    If You Prefer Not To Update Online

    Obtain a paper W-4 Form from the Human Resources Office, the Payroll Office, or the UCOP website.

    • Complete the top portion on the W-4 form and Section III Exemption from Tax Withholding
    • Print the word EXEMPT in the box, sign and date the bottom of the form
    • Submit to the Payroll Office, no later than January 15; disregard any conflicting submission deadline date information provided on the UCOP website
      Witholding information for retirees

      Retiree payment and reporting is adminstered by the UC Retirement System (UCRS) Office located at the Office of the President.

      • The Santa Cruz campus Payroll Office does not administer retirees' payroll
      • Click here for UCRS tax forms
        • Submit these forms to the UCRS Office at UCOP, not the Campus Payroll Office
      • Questions related to retiree payment and reporting should be directed to UCRS Customer Service: 800-888-8267
      IRS form W-2 "Wage and Tax Statement"

      Use the UC At Your Service (AYSO) website to download a duplicate W-2 Wage and Tax Statement, and to save paper by signing up to receive your W-2 form electronically from the website.



      Viewing your W-2 on the AYSO website

      1. Sign in to the AYSO Web site with your user name and password.
      2. Click on W-2 in the Income & Taxes list.
      3. Click View Your W-2 from the list on the left hand side of the page.


      Selecting Electronic Delivery of Your W-2

      1. You must make your selection by December 31 in order for it to become effective for the tax year just ending.
      2. Sign in to the AYSO Web site with your user name and password.
      3. Click on W-2 in the Income & Taxes list.
      4. Click Select Delivery Method from the list on the left hand side of the page. You will see a "Consent to Receive Electronic W-2" screen.
      5. To sign up to receive your W-2 electronically, check the acknowledgement box, and select an e-mail address where you want notification of W-2 availability sent.
        • Your UC e-mail address is selected by default
        • You may select your personal e-mail address. If it is not listed, refer to the "Adding a Personal Address," below.
      6. Click on the "Submit" button to confirm your selection.
      7. Review the e-mail address you selected to ensure that you receive an e-mail from UC Customer Service confirming your election to receive W-2s online.  

      Adding a Personal Address

      Add a personal e-mail address by performing the following steps:

      1. Click Main Menu from the list at the left of the screen.
      2. On the Main Menu, under the About heading, select My Contact Information.
      3. Select Personal Email from the list at the left of the screen.
      4. Enter your personal e-mail address twice and click Submit.
      5. Follow the instructions in "Selecting Electronic Delivery for Your W-2," above to return to the Consent to Receive Electronic Delivery screen to finalize your election for a web based W-2.

      Requesting a Paper W-2

      • You can quickly download and print a a duplicate W-2 using the AYSO website - just log on and print from any computer connected to the Internet. 
      • If you do not have access to the AYSO website, print out and complete a Duplicate W-2 Request Form, and send it to the Payroll Office.
        • Remember to provide a mailing address (on campus or home) or e-mail address.
        • Federal privacy laws prohibit a duplicate W-2 from being faxed to you.
        • It usually takes 2 to 3 working days, from the time of receipt, for the Payroll Office to fulfill a request