There are a number of deductions that will occur from most employee’s compensation. Among these are applicable federal and state income taxes. Social Security deductions are also taken from each employee’s earnings up to a specified limit that is called the Social Security “wage base.” This deduction is noted on the employee’s pay statement as FICA (actual social security deposits) and FICA MED (contributions to Medicare) and are combined to equal 7.65% of the employee’s taxable pay. Bates College matches the amount of Social Security taxes paid by each employee; Bates College’s match of 7.65% of the employee’s taxable earnings is noted on the pay statement as well.

International employees may be exempt from certain taxes and social security withholdings according to appropriate tax treaties and IRS regulations.

Other wage deductions, such as garnishments or tax levies, may be made to fulfill legal requirements when appropriate.

In addition to legally mandated deductions, each benefit eligible employee will have deductions from their paycheck according to the benefits selected from the Bates College flexible benefits program. Employees make their benefit selections during their initial employment processing or annually during the benefits Open Enrollment period. Eligible employees authorize deductions from their paychecks to cover the cost of participating in these programs. The actual amount deducted will be determined by the benefits that were elected during initial benefits enrollment, or those benefits selected during the annual open enrollment period.

Exempt Employees (Monthly Pay Cycle): benefits credits and all benefit deductions are taken during each monthly pay period.

Nonexempt Employees (Bi-Weekly Pay Cycle): benefit deductions and credits are based on the number of pay periods they will be paid in a year and their benefit status (full-time full year, 10 month academic year and  9 month academic year).  The number of pay periods could vary from year to year (generally 26 pay periods) determined by where the pay dates fall on the calendar.  The actual amount deducted will be determined by the benefits that were elected for the year. However, benefit deductions are taken from the employee’s pay only 24 times per year, or twice a month. This results in two benefit deduction-free checks during months where there are 3 pay periods.