Announcements

The Social Security Administration (SSA) announced that the 2025 social security wage base will be $176,100; an increase of $7,500 from 2024.  The Social Security tax rate will be 6.2% for 2025 up to the Social Security wage base.  The maximum Social Security tax employees and employers will each pay in 2025 is $10,918.20.  As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax. Wages paid in excess of $200,000 in 2025 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees' wages.

Teachers College Payroll Team are not Tax Accountants and will not give tax advice to employees on how to fill out their W-4. Please refer to the IRS (www.IRS.gov) website if you have questions on how to fill out your W-4. Please also note that if you claimed exempt status previously on your W-4, you are required to re-select your exempt status by February 18, 2025, in order to continue to be exempt from withholding during 2025. You may update your W-4 information by logging in to MyTC portal.

All W-2s are legally due to be mailed by the 31st of January.  Teachers College will mail out in accordance with federal law.  Please log in to MyTC portal where you can update your address and view your W-2 online.

Employer-provided tuition assistance in excess of $5,250 per calendar year, is deemed as taxable income by the Internal Revenue Service.  Taxable tuition income must be reported and taxed at the Supplemental (flat) tax rate.  For tax year 2025, the Supplemental tax rates for the primary taxing agencies are:

Federal Withholding Tax (FWT)                                   22.00%

FICA -Social Security Tax (FOA)                                    6.20%

FICA -Medicare Tax (FIM)                                              1.45%

New York State Income tax (NYS)                               11.70%

New York City Income Tax (NYC)                                 4.25%

The Benefits Department notifies all individuals who receive employer-provided tuition assistance in excess of $5,250 (taxable tuition).  The notification includes a schedule showing the total amount over $5,250, the number of pay-cycles for the equally divided amounts to be added to income, and the beginning and ending dates in which the tuition income will be reported and taxed.