Taxes

W-2 copies

W-2s are processed and available to employees on or before Jan. 31 each year. All employees are encouraged to enroll in the option to receive their W-2 electronically. By enrolling in the electronic receipt. employees will have access to these forms through employee self-service as soon as they are processed. These forms will remain easily accessible to the employee for years to come and may be printed as needed. Those employees not enrolled in the electronic receipt will have their W-2s mailed to the home address on file at the time of processing.

Any employee requesting a copy of their W-2 must fill out the UMMC request for IRS W-2. The form must be completed in its entirety. The employees signature not only authorizes the request for the copy, but it also acknowledges the fee charged to do so.

If an employee cannot come in to the Payroll office to complete the form, it may be faxed. The signature on any form not signed in the office will be verified against the signed federal or state withholding forms kept on file in the payroll office.

If the request is from a previous employee or an employee who does not want the deduction taken out of his/her next payroll check, the fee must be paid before the copy will be sent.

The fees for employees not paying in advance are entered and deducted from the next regularly scheduled payroll.

Copies will be made available the next business day unless payroll processing deadlines cause a delay, which will be notified to the employee upon receipt of the request form.

Taxable wage calculations

The following is an outline of how taxable wages are calculated.

• FICA and Medicare

  Gross earnings
  + taxable benefits
  - cafeteria deducations*
  = FICA and Medicare taxable wages

  * Cafeteria deductions may include:

  • Life insurance $6 max)
  • Health insurance
    Flex deductions
  • Cancer
  • Dental
  • Supplemental health
  • Parking

  Example: An employee with a gross earning of $500 with a flex deduction of $50, a $5 cancer deduction and a tuition taxable benefit of $100 would be calculated as:
  
  $500 gross earnings 
  + $100 taxable benefits
  - $50 flex deduction
  - $5 cancer deduction
  = $545 FICA and Medicare taxable earnings
  ($545 x 6.2 = $33.79 FICA taxes
  $545 x 1.45% = $7.90 Medicare taxes)

• Federal and state

  Gross earnings
  + taxable benefits
  - cafeteria deductions
  - state retirement
  - deferred compensation
  - annuities
  = federal and state taxable wages
  
  Example: An employee with a gross earning of $500, a flex deduction of $50, a $5 cancer deduction, a $25 annuity deduction and a tuition taxable benefit of $100 would be calculated as:
  
  $500 gross earnings
  + $100 taxable benefits
  - $50 flex deduction
  - $ 5 cancer deduction
  - $25 annuity
  = $520 federal and state taxable earnings