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Benefits and Deductions

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. Most benefits are administered by the Human Resources department.

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 include fitness deductions, parking deductions, and union dues.

Benefit Deductions

Table showing benefit deductions, whether they are pre-tax or after tax, and whether they are voluntary or not
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 of Pretax After tax 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 Dependent 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 Pretax Pretax Voluntary
Retirement After tax Pretax Voluntary
Saving Bonds After tax After tax Voluntary
Union Dues After tax After tax Required

Tax Deductions

Table showing tax deductions, whether they are voluntary, and what exceptions there are to requirements
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