Tax Information for Faculty and Staff

Compensation for Services

W-2 forms, issued by Jan. 31, summarize all income, deductions, and taxes withheld information.

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 a
- "de minimis" fringe benefit,
- length of service award,
- safety achievement award, or
- retirement gift.
Financial support to participate in non-credit events will be taxable to the recipient.

The 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 this limit is added to the employee's W-2 Form as additional taxable compensation.

Spouses and dependents of eligible employees who meet the program requirements are eligible for a 75 percent reduction in tuition for University degree programs.
Nontaxable for undergraduate students
Graduate expenses are fully taxable to employee

Reimbursement of moving (relocation) expenses are considered a taxable benefit.
Standard rates for moving expense purposes are available on the IRS Standard Mileage Rate table.
These 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.

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