IRS Regulations and W-2 Form Reporting

Payroll Reporters,

Please note that we are approaching the end of the 2010 calendar year. IRS regulations require us to report on the W-2 forms and pay and/or withhold any appropriate employment taxes on certain benefits provided during the year, including (but not limited to) the following: gift certificates, certain tuition reductions, Long Term Disability payments, unqualified moving expenses, overpayments, voids and miscellaneous benefits. Any of such benefits provided to employees during the 2010 calendar year must be submitted to Payroll Accounting (411 Park) by December 7th in order to be processed for the final pay period of the year on December 15th. Benefit information submitted after this date may result in an incorrect W-2 and incorrect employment taxes for the year and subject the University to penalties. Such penalties will be passed on to the offending department.

If your department is planning on giving gift certificates during the holiday season, please submit information using the attached spreadsheet to Payroll Accounting by the December 7th deadline, or if this is not possible do not distribute the gift certificates until after January 1st, 2011. After completing this form please email it to: Ying He

Gift certificates given to employees after December 7th and before January 1st will incur a $12 processing fee per certificate in recognition of the manual adjustments required to correct the payroll tax records.

If your department finds it necessary to provide an employee recognition award after December 7th and before January 1st, please consider awarding tangible personal property with a de minimis value (under $75.) Such type of award is not required to be reported on the W-2 nor is subject to payroll withholding. For more information see

Tax Services & Payroll Accounting website

Any other manual adjustments to wages (as listed above) incurred during the calendar year but not submitted to Payroll Accounting by December 7th will also incur a $12 processing fee.

If you are holding any checks for void or overpayments to be processed, please send to the Payroll Office (420 Wakara) immediately.

Thank you for your immediate attention to this matter.

Ask Us a Question If you have any questions or feedback just ask us!