Are payroll taxes withheld from my stipend check?
No. Stipend payments are for the gross amount, calculated as the reported stipend hours multiplied by your stipend rate.
How are payroll taxes withheld?
Each pay period, the BHMT reports your stipend payment to KP Payroll. Stipend payments will appear on your paystub as “BHMT Stipend” and will usually be included in the pay period following when you actually received the stipend payment. The stipend payments are added to the KP wages for each pay period to determine the gross taxable amount. Payroll taxes are calculated and withheld on the total gross taxable amount (BHMT Stipend + KP pay).
Why would the tax withholding rate be different if I submit hours for multiple pay periods at the same time?
The tax is calculated based on the gross taxable amount of each paycheck. Your gross taxable amount will be higher if you are reporting stipend hours for more than one pay period. This could put you into a higher tax bracket and the income tax withheld on that check will be calculated using a higher tax rate. This can sometimes cause your KP net pay to be drastically reduced. You can avoid this unfortunate situation by submitting your stipend hours on time each pay period.
What can I do if I think too much taxes are being withheld?
To adjust your payroll tax withholding, submit a new W-4 form (Federal and state equivalent) to KP HR/Payroll.
Where do stipend payments show up on my W-2?
Stipend payments are combined with your KP salary and wages in box 1 on your KP W-2 form. They are not reported separately, and no additional tax documentation is issued by the BHMT at year-end.