Benefits and Deductions Related to Pay

All full time faculty and staff are given the opportunity to enroll in various types of benefits and deductions and in some cases can elect to have them pretax or after tax. Electing the pretax option means that the benefit or deduction will be withheld from the gross pay prior to calculating the withholding taxes. While most benefits and deductions are elected voluntarily there are some that are required. American University offers many types of benefits and deductions. Below is a chart to assist you in understanding the various benefits and deductions we have available and how it affects your pay.

There are some deductions that must be signed up for or stopped through the office that administers and maintains the plan. These deductions are the Fitness Center membership fees, the Parking and Smartrip/Metro pass fees, and the union dues.

Benefit/Deduction	Medicare/FICA Tax	Federal Tax	Voluntary/Required
AD&D Insurance	After tax	After tax	Voluntary
AU Gift	After tax	After tax	Voluntary
Attachments, Garnishments and levies	After tax	After tax	Required
Child Care	After tax	After tax	Voluntary
Dental Plan	After tax or Pretax	After tax or Pretax	Voluntary
Disability	After tax	After tax	Required
EAP Loan	After tax	After tax	Voluntary
Fitness Center	After tax	After tax	Voluntary
Flexible Spending (medical and dependent)	Pretax	Pretax	Voluntary
Legal Plan	After tax	After tax	Voluntary
Life Insurance Optional	After tax	After tax	Voluntary
Life Insurance Spouse or Dependant	After tax	After tax	Voluntary
Medical plans	After tax or Pretax	After tax or Pretax	Voluntary
Metrochek	Pretax	Pretax	Voluntary
Miscellaneous deduction	After tax	After tax	Voluntary
Parking	After tax or Pretax	After tax or Pretax	Voluntary
Retirement	After tax	Pre tax	Voluntary
Saving Bonds	After tax	After tax	Voluntary
Union Dues	After tax	After tax	Required

Tax Deductions

Type of Tax	Required or Voluntary	Exceptions to requirement
Medicare	Required	Students who are half time or greater and regularly attending classes are exempt. Foreign Nationals with F, J, Q or M Visas
FICA	Required	Students who are half time or greater and regularly attending classes are exempt. Foreign Nationals with F, J, Q or M Visas
Federal Withholding	Required	Foreign Nationals with tax treaty can be exempt
Foreign National (14% or 30%)	Required	Foreign Nationals with tax treaty can be exempt
State Withholding	Required	Foreign Nationals with tax treaty can be exempt