Compensation for Services

All faculty and staff will receive W-2 forms  by January 31-summarizing all income, deductions, and taxes withheld information

Prizes and Awards

• All prizes and awards are taxable to the recipient.
• Cash gifts, prizes, and awards given to employees, including students, that are paid for by university funds will be considered gross wages.  These amounts will be added to the employee’s W-2 , and will be subject to federal, state, and FICA taxes.
• Non-cash gifts, prizes, and awards given to employees are subject to tax unless these items of recognition qualify as:
•  “de minimis” fringe benefit
• length of service award
• safety achievement award
• retirement gifts

Employee Assistance Program and TRIP

• The benefit is the amount paid on the employee’s behalf is not taxable.
• Graduate expenses for the employee up to $ 5,250 are tax free
• The benefit includes amounts paid for tuition, required fees, books, etc.
• There are no income limits.
• Graduate expenses for spouses and/or dependents are fully taxable to the employee.
• If the benefit exceeds the $ 5,250, the difference is added to the employee’s W-2 Form  as additional taxable compensation.

Moving/Relocation Reimbursements

• Reimbursement of moving (relocation) expenses may or may not be taxable.
• Nontaxable moving expenses may include packing and transportation costs of the household items, travel and lodging for the family, and storing of items for a short period
• The IRS standard moving rate is .19 per mile for 2008.  
• Taxable moving expenses may include all meals for all trips and house-hunting expenses.  If the new employee is reimbursed at the IRS standard mileage rate, the difference is taxable.
• Taxable reimbursements will be added to the new employee’s W-2 Form , and applicable taxes will be withheld.
• For additional information, contact the travel department or payroll.

Retirement Information

•  MSPERS-Michigan State Public School Employees Retirement System
• The website address is:  www.michigan.gov/ors

• TIAA-CREF-Teachers Insurance and Annuity Association College Retirements Equities Fund
• The website address is www.tiaacref.org

For additional information on these topics, contact the Benefits and/or Payroll departments.

IRS Publications

• Publication 17  -Your Federal Income Tax
• Publication 54  -Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 463  -Travel, Entertainment, Gift, and Car Expenses
• Publication 514  -Foreign Tax Credit for Individuals
• Publication 521  -Moving Expenses
• Publication 590  -Individual Retirement Arrangements (IRA’s)
• Publication 593  -Tax Highlights for U.S. Citizens and Residents Going Abroad
• Publication 596  -Earned Income Credit
• Publication 970  -Tax Benefits for Higher Education

Federal Tax Forms

• Form W-2  -Wage and Tax Statement
• Form W-4  -Employee’s Withholding Allowance Certificate
• Form 1040EZ  -Income Tax Return for Single and Joint Filers with No Dependents
• Form 1040A  -U.S. Individual Income Tax Return
• Form 1040  -U.S. Individual Income Tax Return