2016 Tax Reporting

This memo provides an explanation of some of the important changes for this year and other information for the 2016 Form W-2, Wage and Tax Statement.

For federal tax purposes, the following pre-tax benefits are excluded from the gross taxable federal wages in Box 1 (Wages, Tips, Other Compensation) on the employee’s Form W-2:

  • certain contributions to the Commonwealth Retirement Plan (SERS)
  • contributions to the Optional Retirement Program (ORP)
  • contributions to the 401(a) Gap Plan
  • contributions to the Dependent Care Assistance Plan (DCAP)
  • contributions to the 457(b) Deferred Compensation Plan (excluding the After Tax contributions to the 457(b) Roth Plan reported in Box 12EE)
  • contributions to the 403(b) Elective Deferral Savings Plan
  • certain contributions to the Pre-Tax Parking and Transit Pass Programs
  • certain payments of Health Insurance Premiums
  • contributions to Health Care Saving Account (HSCA) and Health Care Saving Account Fee (HCSAF).

 

For Massachusetts state tax purposes, the following pre-tax benefits are excluded from the gross taxable state wages in Box 16 (State Wages, Tips, etc.) on the employee’s Form W-2:

  • contributions to the 401(a) Gap Plan
  • certain contributions to the Dependent Care Assistance Plan (DCAP)
  • contributions to the 457(b) Deferred Compensation Plan (excluding the After Tax contributions to the 457(b) Roth Plan reported in Box 12EE)
  • contributions to the 403(b) Elective Deferral Savings Plan
  • certain contributions to the Pre-Tax Parking and Transit Pass Programs
  • certain payments of Health Insurance Premiums
  • contributions to Health Care Saving Account (HSCA)
  • contributions to Health Care Saving Account HCSA Fee (HCSAF)

 

Generally, state wages (Box 16) are higher than federal wages (Box 1) because contributions to SERS and ORP are excluded from federal wages, but not from state wages.  State wages include the value of tuition and fee waivers for graduate level courses for employee dependents.

 

Box 12DD displays the cost of employer-provided group health insurance.  This is for informational purposes only and has no effect on your grosses or taxes.   If there are more than five entries in Box 12, or more than four entries in Box 14, a second W-2 will print with only that information.

 

Box 14 Codes (if applicable) are as follows for 2016:

 

14O – Health Care Spending Account (with HCSA Fee) 14W – Qualified Transit/Parking
14S – Personal Use Auto 14X – Post-Tax Retirement
14T – Housing Allowance 14Y – Pre-Tax Retirement
14V – Pre-Tax Parking 14Z – Pre-Tax Health Insurance

 

Note to foreign employees about 1042-S Forms:

If you are an employee who has claimed exemption from income tax withholding based on a tax treaty, your exempt treaty wages will be reported on a 1042-S form.  Your taxable wages (if applicable) will be reported on a W-2 form.  If you were not a U.S. citizen or U.S. resident for some portion of the tax year and you received a vendor payment or certain scholarships and awards (outside of payroll), you may receive one or more 1042-S forms.

 

The 1042-S forms will be delivered to the foreign employees separately from the W-2 forms.  They are scheduled to be distributed by March 15, 2017 in accordance with IRS requirements.

 

Please contact your Human Resource or Payroll Office:

  1. to obtain a reprint of your Form W-2 if your copy is misplaced or lost. You can do this yourself if you have access to the PeopleSoft self-service panel, but be careful when you print them as your SSN and address are there.   or
  2. to obtain a Form W-2C (Statement of Corrected Income and Tax Amounts) if your name, social security number or any of the information reported on Form W-2 is incorrect, or
  3. for information about the contents of specific boxes on Form W-2, or
  4. if you have any additional questions.

Finance Tools and Database Upgrade impacts for Summit HR

Due to the Finance Tools and Database Upgrade schedule below, the last Summit Finance Batch run will be as of Wednesday, May 11th; Thursday (May 12) & Friday (May 13) will not run.

  1. Finance Production:  will not be available Thursday (after 5 PM), Friday, Saturday or Sunday; May 12 (5 PM) – May 15.
  2. Finance Reporting: will be available on Friday, May 13 with data as of Wednesday, May 11 (post batch).  Finance Reporting will not be available on Saturday or Sunday.
  3. Finance Production and Reporting: will be available on Monday morning, May 16.  Batch will have run on Sunday so data will be up to date in both environments.
  4. Summit:
    1. Summit availability will not change during this time.  Summit Finance data during the event will be as of Wednesday, May 11 (post batch).
    2. Summit batch will have run on Sunday so Finance data will be up to date on Monday morning, May 16.
  5. Buyways: users can login and perform searches, but there is no communication to PeopleSoft during the downtime.

Please note:  Summit HR Batch will run as scheduled, however Position Management data will not be updated with Finance data during this time period as well; HR data will continue to update.

2015 Tax Reporting and W2 changes

This memo provides an explanation of some of the important changes for this year and other information for the 2015 Form W-2, Wage and Tax Statement.

For federal tax purposes, the following pre-tax benefits are excluded from the gross taxable federal wages in Box 1 (Wages, Tips, Other Compensation) on the employee’s Form W-2:
• certain contributions to the Commonwealth Retirement Plan (SERS)
• contributions to the Optional Retirement Program (ORP)
• contributions to the 401(a) Gap Plan
• contributions to the Dependent Care Assistance Plan (DCAP)
• contributions to the 457(b) Deferred Compensation Plan (excluding the After Tax contributions to the 457(b) Roth Plan reported in Box 12EE)
• contributions to the 403(b) Elective Deferral Savings Plan
• certain contributions to the Pre-Tax Parking and Transit Pass Programs
• certain payments of Health Insurance Premiums
• contributions to Health Care Saving Account (HSCA) and Health Care Saving Account Fee (HCSAF).

For Massachusetts state tax purposes, the following pre-tax benefits are excluded from the gross taxable state wages in Box 16 (State Wages, Tips, etc.) on the employee’s Form W-2:
• contributions to the 401(a) Gap Plan
• certain contributions to the Dependent Care Assistance Plan (DCAP)
• contributions to the 457(b) Deferred Compensation Plan (excluding the After Tax contributions to the 457(b) Roth Plan reported in Box 12EE)
• contributions to the 403(b) Elective Deferral Savings Plan
• certain contributions to the Pre-Tax Parking and Transit Pass Programs
• certain payments of Health Insurance Premiums
• contributions to Health Care Saving Account (HSCA)
• contributions to Health Care Saving Account HCSA Fee (HCSAF)

Generally, state wages (Box 16) are higher than federal wages (Box 1) because contributions to SERS and ORP are excluded from federal wages, but not from state wages. State wages include the value of tuition and fee waivers for graduate level courses for employee dependents.

Box 12DD displays the cost of employer-provided group health insurance. This is for informational purposes only and has no effect on your grosses or taxes. If there are more than five entries in Box 12, or more than four entries in Box 14, a second W-2 will print with only that information.

Box 14 Codes (if applicable) are as follows for 2015:

14O – Health Care Spending Account (with HCSA Fee) 14W – Qualified Transit/Parking
14S – Personal Use Auto 14X – Post-Tax Retirement
14T – Housing Allowance 14Y – Pre-Tax Retirement
14V – Pre-Tax Parking 14Z – Pre-Tax Health Insurance

Note to foreign employees about 1042-S Forms:
If you are an employee who has claimed exemption from income tax withholding based on a tax treaty, your exempt treaty wages will be reported on a 1042-S form. Your taxable wages (if applicable) will be reported on a W-2 form. If you were not a U.S. citizen or U.S. resident for some portion of the tax year and you received a vendor payment or certain scholarships and awards (outside of payroll), you may receive one or more 1042-S forms.

The 1042-S forms will be delivered to the foreign employees separately from the W-2 forms. They are scheduled to be distributed by March 15, 2016 in accordance with IRS requirements.

Please contact your Human Resource or Payroll Office:
1. to obtain a reprint of your Form W-2 if your copy is misplaced or lost. You can do this yourself if you have access to the PeopleSoft self-service panel, but be careful when you print them as your SSN and address are there. or
2. to obtain a Form W-2C (Statement of Corrected Income and Tax Amounts) if your name, social security number or any of the information reported on Form W-2 is incorrect, or
3. for information about the contents of specific boxes on Form W-2, or
4. if you have any additional questions.

September 2015 – Attention New Employees

The start of the school year is also one of the biggest periods of time
for new employees. In particular a lot of first time student employees.
There are job aids and videos to help new employees learn about the
features of the HR Direct system.

A couple key things to know…
  1. All Employees are on a bi-weekly pay cycle. See pay calender for deadlines and pay dates.
  2. Student hours must be approved by the manager in order to have payroll processed.
Here are a couple links to get you started:

July 4, 2015 Time Reporting Information

4th of
July Holiday News:

The University is officially open on Friday, July 3, 2015 (skeleton staffing is fine). The official state holiday for July 4th is on Saturday. Employees who are planning to work on July 3rd can accrue holiday comp time to be used within 60 days.

Please see the HR Direct job aid for how to code your timesheet if you work on Friday, July 3rd . If you are off on July 3rd no time entry is needed for that day.

http://www.uml.edu/docs/ESS-Manage_Saturday_Holiday_tcm18-46484_tcm18-194684.pdf

1/29/15 Snow/University Closed Time Reporting

There are a few different variables for time reporting this pay period. Hopefully this information will help you complete your HR Direct timesheet correctly.

Monday, Jan. 26
If you had planned to be out on you must report time with the corresponding Vacation or Personal time you intended to use. Example 7.5 VAC
If you worked in the morning before the early release, then you update your timesheet with the hours worked (REG) and the remaining as University Closed (UCLSD). Example 6.0 REG; 1.5 UCLSD
Tuesday, Jan. 27 & Wednesday, Jan. 28; Monday, Feb 2 & Tuesday Feb. 3
If you had planned to be out on you must report time with the corresponding Vacation or Personal time you intended to use. Example 7.5 VAC
If you were scheduled to work you should report time as 7.5 University Closed (UCLSD).
Below is an example of an SEIU employee timesheet for a person who worked / planned to work on Monday, Tuesday, and Wednesday during first week of pay period.
uclsd012915.png

2014 W-2 Information for Employees

W-2 Information for 2014

W-2 Year End Forms for 2014 have been mailed to addresses on file within HR Direct. W-2’s are also now available for employees in HR Direct under Self Service > Payroll and Compensation.

IMPORTANT: It is highly recommended that employees review the additional information available on the UMass W-2 Information link, available below and in Self Service for a more detailed explanation of 2014 tax reporting and codes used on the W-2 form.

2014 W-2 Information for Employees (as of December 31 2014).pdf

Pay very close attention to State Retirement Plan Contributions (Box 14Y on Form W-2) as these are not tax-deferred for state income tax purposes. However, the Plan Administrator’s understanding is that the first $2,000 of your (annual) Plan Contributions are deductible on your state tax return. This deduction is calculated automatically throughout the calendar year, however many tax software programs do not automatically recognize the code 14Y in this way.

For more information regarding this please refer to the Retirement 2000 section at the link below.

http://www.mass.gov/osc/business-functions/payroll-lcm/tax-information.html

Please contact your personal tax advisor, for additional assistance with this issue.

12/18/14 – Early Time Reporting for Holiday

Employee Time Reporting and Approval can be done early for the current Pay Period (12/14/2014- 12/27/2014)

The University will be partially closed from Thursday, December 25, 2014 ‘ Friday, January 2, 2015

In an effort to provide everyone with the opportunity to enjoy the holiday break and partial closing employees can begin to report any scheduled time off starting on Thursday, December 18, 2014

If your employees report their time for the holiday closing on Thursday December 18, 2014 their time will be available on Friday, December 19th for approval.

The final deadline for approving time is Monday, December, 29, 2014

With the exception of the holiday (12/25/2014) employees should be reporting personal time (PER) or vacation time (VAC) for any time off during the break.

12/11/14 Confirm Your Address in HR Direct

Year-end tax documents (W-2’s and 1042-S forms) will be mailed out in the next few weeks. It is important that your address in HR Direct is current to ensure you receive these documents in a timely manner.
Please log into HR Direct to verify and update, if needed, the address on file. The path to review and update your address is:
Self Service > Personal Information > Home and Mailing Address
If you need assistance, please see the HR Job Aids and Training.

Personal Time 2014 & 2015

Use of 2014 Personal Time:

Employees can use their 2014 Personal time up until January 10, 2015.

New 2015 Personal Time:

New accruals for 2015 personal time will be awarded on employees timesheet for Wednesday, January 14, 2015. Once it appears, it can be applied to dates back to the start of the pay period (Sunday, January 11, 2015).