Tax Services & Payroll Accounting
Employee Deferral of FICA withholding on wages paid September 1 – December 31, 2020
On August 8, 2020 President Trump issued a “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster.” While this memorandum allows employers to suspend collection of the employee portion of Social Security FICA taxes (one part of the required payroll tax withholdings) from September 1, 2020 through December 31, 2020, the Internal Revenue Service and Department of Treasury have provided very limited guidance. At this time, any amount deferred will have to be repaid. More guidance is required to understand how repayment of the amounts deferred would be handled. Payroll software to process deferrals correctly would also be required and is currently not available. Because of the current lack of information about the deferral and how it will operate, in addition to the required software, the University will not be deferring the withholding of the employee portion of Social Security FICA taxes. We are monitoring this issue and should the Internal Revenue Service or Department of Treasury issue additional guidance on the deferral, we will review our decision and update employees on this matter.
The IRS does not require a 1099MISC or any tax statement be issued. Chapter one in the IRS Publication 970 Tax Benefits for Education, provides the information to determine if the payment is taxable (not wages) and how to report when filing your tax returns.
New Foreign Individual Employees or Traineeship Recipients:
Nonresident Alien students and scholars that receive income from University of Utah will receive an email from the Tax Services Dept. providing instructions to utilize the online software GLACIER to complete the required tax forms. Therefore, an appointment with Tax Services is no longer necessary, however, if you wish to make an appointment, click here to make an appointment.
Provide the University with excellent customer service with respect to tax services and payroll accounting including compliance, tax research, strategy, planning and accounting.