W-4 Forms – Direct Deposit – Bank/Credit Union – Social Security – Savings Bonds – Unemployment Insurance & Worker’s Compensation
Welcome to UMBC Human Resources – Payroll. UMBC Payroll reviews the paperwork required for all new and existing employees. In addition, we calculate gross pay and process the files to transmit pay that are required by Central Payroll Bureau.
In this section you will find information on how to enroll in direct deposit and savings bonds as well as details for banking and credit unions on campus. There is also important information relating to employee/employer taxes including W-4/MW507 forms, social security and unemployment insurance and worker’s compensation.
Outlines tax exemptions chosen by employees.
State of Maryland employees use a combined W-4 form with the Maryland Withholding Form MW 507. This form must be completed in a timely manner by all new employees to determine tax exemptions. It may be necessary for Central Payroll Bureau to use default withholding for the 1st paycheck. The default withholding is:
- Federal maximum income tax is – single status with zero allowances (exemptions).
- Maryland State maximum income tax is – single status with one allowance (exemption).
- County Tax at maximum rate is currently 3.20 %, added to the State tax.
Upon receiving the W-4 form from the employee the withholding status will be changed accordingly for future pays. Tax regulations preclude an employer from making retroactive adjustments to the taxes already withheld. Any over-payment of taxes is refunded to the employee when they file their taxes for that year.
Employees who currently claim exemption from Federal and/or State income tax withholding should be made aware that this exemption from withholding requires an annual filing of the Form W-4/MW-507.
If currently residing outside the State of Maryland or considering moving outside the State of Maryland, employees are encouraged to contact the Payroll Department to obtain information regarding reciprocal agreements with States neighboring Maryland.
Further information and forms are available at:
Mandatory for all employees, regardless of banking institution. Employees may have net pay deposited directly into their checking account.
Direct deposit usually takes two pay periods to begin but may take up to 60 days from the initial application.
Employees may view and print their direct deposit advice or pay check online at the Payroll Online Service Center .
Additional information about direct deposit can be found here.
All University employees are eligible for membership in the State Employees Credit Union (SECU). This is a financial institution mutually owned and operated by State employees. SECU does not have a branch on campus, but ATM machines are available. Applications for membership are available at the front counter of the Department of Human Resources.
PNC has a branch office in the Commons and ATM machines on campus as well. All employees are eligible for PNC accounts.
At both SECU and PNC, the entire spectrum of banking services are available to include: share accounts (savings), share draft accounts (checking), IRA’s, direct deposit, home equity, personal loans, automobile loans, etc.
Additionally, UMBC has partnered with PNC bank to provide incentives to campus employees. PNC account applications are available at the campus location or Catonsville branch.
A federal program which pays benefits for 3 types of circumstances: retirement, disability, or death. In addition, health benefits under Medicare are provided to social security recipients.
Employees are automatically covered under social security from the first day of employment. There are no waiting periods and no enrollment forms need to be completed.
The State matches employee contributions to social security at the rate of 7.65% with a maximum wage base that fluctuates each year.
Additional information on social security benefits is available in the Social Security Handbook.
Series EE and Series I savings bonds are an easy way to gather funds for education or retirement purposes, often at a significant tax savings. Maryland state employees can have funds taken directly from their paychecks and used to purchase U.S. savings bonds (Series EE & I). The bonds can be purchased in $100 denominations or more, and may be redeemed without fee or commission at any time after six months from the date they were issued. Series EE & Series I forms are available at the front desk of the Department of Human Resources or at: http://compnet.comp.state.md.us/Central_Payroll_Bureau/CPB_Static_Files/bondform.pdf
Further information and forms are available at: Central Payroll Bureau
Workers Compensation & Unemployment Insurance
Employees covered on the first day of employment. Coverage is for disability or death of an employee which arises out of and in the course of the worker’s employment.
The employee is paid compensation for compensable injuries at 66 2/3% of salary, untaxed.
The University pays the entire cost for this insurance. No enrollment forms are required.
Provides employees with cash benefit if you become unemployed through no fault of your own and are ready, willing and able to work.
The State pays all contributions for unemployment insurance. No monies are withheld from employee paycheck for coverage.