Payroll Terminology

Longevity Pay 

Additional pay automatically provided to eligible full-time employees who have completed at least 24 months of state service. Only employees appointed at 40 hours per week on the first workday of the month are eligible for longevity pay.

• • HOP 5-3130: Longevity Pay - includes chart of amounts per months of state service
  • Premium Pay: Longevity Pay

Medicare and OASDI (Social Security) Taxes

Amount of taxes withheld as required by the Federal Insurance Contributions Act (FICA). These taxes are subject to change by Congress and are assessed on all wages. Current rates are posted at Calculation of Federal Employment Taxes on the Payroll Services site.

Premium Sharing 

Employer-paid contribution towards cost of university health insurance for eligible employees, if selected. The amount is based on full-time or part-time status as of the first calendar day of the month and employee's level of coverage. Employee premium-sharing amounts are listed on the HR Health Insurance Rates page.

• • Full-time: Employment at 40 hours per week/100% time. Academic student employees in eligible positions (e.g., TA, AI, GRA) are treated as full-time employees for premium-sharing purposes.
  • Part-time: Employment at anything less than 40 hours per week/100% time, but at least 20 hours per week/50% time.
  • Level of coverage: Health insurance enrollment options including Employee Only, Employee and Spouse, Employee and Child(ren), or Employee and Family coverage.

Retirement

Mandatory employee contribution to either the Teacher Retirement System (TRS) or Optional Retirement Program (ORP) state retirement program, as identified on the employee pay slip. This amount is a contribution percentage based on gross salary.

View current contribution rates:

• • TRS
  • ORP

Withholding Tax

Amount of federal income taxes withheld from pay, based on taxable income and withholding allowances selected on IRS Form W-4. Current rates are posted at Calculation of Federal Employment Taxes on the Payroll Services site.

Withholding elections can be updated in Workday in the Employee Profile. Go to the "Pay" tab, and then "Tax Elections".

Please send suggested additions to this page and notifications about broken links to COE-HR@austin.utexas.edu.

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