Compensation for Services
W-2 forms are issued by January 31st; 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
- Amount paid on the employee’s behalf is not taxable.
- Graduate expenses for the employee up to $ 5,250 are tax free. Any expense above the $5,250 limit is added to the employee's W-2 Form as additional taxable compensation.
TRIP Benefit
- Spouses and dependents of eligible employees who meet the program requirements are eligible for a 50% reduction in tuition for University degree programs.
- Not taxable for undergrad students
- Graduate expenses are fully taxable to employee
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 for 2011 was 19 cents per mile for the period from January 1 to June 30, 2011 and .23.5 cents per mile from July 1 to Dec 31, 2011. (for 2012, the rate is 23 cents per mile.)
- 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
For additional information on these topics, contact the Benefits and/or Payroll departments.
IRS Publications
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