The Federal Withholding tax rates are based on the IRS tax tables. The IRS tax tables are adjusted each year and may result in a minor difference in your federal withholding amount.
The Social Security tax rate is 6.2% on all taxable wage up to the below YTD amounts. When your YTD taxable wage reach the maximum amount for a tax year, wages above the maximum amount are not taxed for Social Security.
Social Security Wage Maximum:
2025 Tax Year: $176,100
2024 Tax Year: $168,600
2023 Tax Year: $160,200
2022 Tax Year: $147,000
Please note: If you reached the maximum taxable wage limit while employed by a previous employer and before your employment with Texas A&M University, you will be taxed Social Security on all Texas A&M pay until you reach the maximum taxable wage limit under Texas A&M. When you have more than one job in a year, each of your employers must withhold Social Security taxes from your wages without regard to what the other employers may have withheld. You may then end up with total Social Security taxes withheld that exceed the maximum. You can claim a refund from the IRS for the Social Security taxes withheld that exceeded the maximum amount when you file your tax return the following year. For more information, see the Social Security Administration website.
The Medicare tax rate is 1.45% on all taxable earnings. In addition, any taxable earnings over $200,000 is taxed additionally at 0.9% bringing the total tax rate for all wages over $200,000 to 2.35%.
The Federal tax rate for regular taxable wages is the federal income tax rate of the tax bracket that your taxable income and filing status falls under. Your W-4 provides your filing status and helps determine your taxable income.
The Federal tax rate for supplemental wages is the federal supplemental tax rate of 22% per IRS regulations.
Pre-taxable deductions will be proportionately distributed across both supplemental wage and regular taxable wages. This may result in a minor difference in your federal withholding amount.
If you have any questions, you may email tax@tamu.edu.