Taxes Explained

Understanding your W-4, tax withholding, and the FICA threshold

W-4 Form Basics

What is a W-4 Form?

The W-4 form tells your employer how much federal income tax to withhold from your paycheck. You'll need to complete this form during onboarding, and you can update it anytime your situation changes.

When to Claim "Exempt"

You can claim exempt from withholding if:

You had no tax liability last year
You expect no tax liability this year
Your total income is below the taxable threshold

What "Exempt" Means

Claiming exempt means:

No federal income tax is withheld
You're responsible for paying any taxes owed
FICA taxes still apply (see below)

Understanding the FICA Threshold

Important information about Social Security and Medicare taxes

The $2,500 FICA Threshold

If you earn less than $2,500 per calendar year:

You are NOT subject to FICA taxes (Social Security and Medicare)
No FICA taxes will be withheld from your paycheck
This threshold resets each January 1st

If you earn $2,500 or more per calendar year:

FICA taxes WILL be withheld (7.65% total)
This includes 6.2% for Social Security and 1.45% for Medicare
Withholding begins when you cross the threshold

Example Scenarios

Scenario 1: Earning $1,800 for the year

Since you're below $2,500, no FICA taxes are withheld. You receive your full pay (minus any income tax withholding from your W-4).

Scenario 2: Earning $3,000 for the year

Once you pass $2,500, FICA taxes (7.65%) begin. This applies to all earnings, not just amounts over $2,500.

W-2 Information

When You'll Receive Your W-2

Your W-2 form will be available by January 31st of the following year. This form shows your total earnings and taxes withheld for the previous calendar year.

How to access your W-2:

Log in to the Employee Portal
Navigate to "Tax Documents"
Download your W-2 as a PDF
Paper copies can be requested if needed

Frequently Asked Tax Questions

Taxes are withheld based on your W-4 form selections. If you claimed exempt but still see deductions, you may have crossed the $2,500 FICA threshold, which requires Social Security and Medicare taxes regardless of your W-4 status.

Log in to the Employee Portal and navigate to "Tax Information" → "Update W-4". Changes typically take effect within 1-2 pay periods.

If you worked but haven't received your W-2 by February 15th, contact our support team immediately. You can also access your W-2 through the Employee Portal starting January 31st.

We cannot provide tax advice. Consult with a tax professional or the IRS to determine the best withholding strategy for your situation. The IRS provides a free withholding calculator on their website.

Still Have Tax Questions?

Our support team can help you understand your tax withholding and W-2 forms