This page is an archived HR news item and may not reflect current university policies or procedures. Items with older posting dates may contain links to web pages that may be expired. References to individuals or groups may or may not be current or valid.

FAQs About Your 2009 Form W-2

Posted: January 20, 2010

To: All University of Virginia Employees
From: Darrell Kozuch Assistant Vice President, University Human Resources
Subject: FAQs About Your 2009 Form W-2

Your 2009 Form W-2 “wage and tax statement” for employees who elected an electronic W-2, will be available on employee self service January 20, 2010. For employees who did not elect to receive an Electronic W-2 the paper W-2’s will be delivered to your home address later this month.

This memo is intended to answer the most frequently asked questions (FAQs) regarding the content and distribution of your W-2, which is needed to file 2009 income tax returns.

Box 1; WAGES, TIPS, OTHER COMPENSATION. This is the taxable amount reported to the Internal Revenue Service (IRS). It includes any taxable fringe benefits (such as education benefits greater than $5,520), rewards and recognition, gifts, bonuses, and taxable moving, as well as the taxable value of group-term life insurance in excess of $50,000 (see box 12, below). The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final 2009 payslip, less any pre-tax deductions. The “YTD Gross” is the sum of the YTD amounts under Hours and Earnings.

Box 3; SOCIAL SECURITY WAGES. The applicable limit on Social Security wages in 2009 was $106,800 ($106,800 for 2010). Income subject to the Social Security tax is not reduced by any retirement deferrals, but is affected by all other pre-tax deductions, which includes parking, healthcare, flex spending, etc. The only applicable exceptions are UVA student employees working while enrolled at least half time and attending classes, and nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.

Box 4; SOCIAL SECURITY TAX WITHHELD. The Social Security tax rate is 6.2%, and a matching amount is paid by UVA. The only applicable exceptions are UVA student employees working while enrolled at least half time and attending classes, and nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.

Box 5; MEDICARE WAGES AND TIPS. There was no applicable limit on Medicare wages in 2008. Income subject to the Medicare tax is not reduced by any retirement deferrals, but is affected by all other pre-tax deductions, which includes parking, healthcare, flex spending, etc. The only applicable exceptions are UVA student employees working while enrolled at least half time and attending classes, and nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.

Box 6; MEDICARE TAX WITHHELD. The Medicare tax rate is 1.45%, and a matching amount is paid by UVA. The only applicable exceptions are UVA student employees working while enrolled at least half time and attending classes, and nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.

Box 10; DEPENDENT CARE BENEFITS. We must report the pre-tax amount paid into a dependent care flexible spending account as part of the UVA Benefits Plan. Only dependent care benefits are reportable. Other pre-tax deductions withheld under the Benefits plan are not reportable.

Box 12; SEE NOTICE TO EMPLOYEE. Up to four figures may appear, when applicable, as described here and in the Notice to Employee on the back of your Form W-2. The following codes are used:

12 C - Taxable Cost of GTL. The calculated value of group-term life insurance in excess of $50,000 that has been added into Box 1 as “other compensation”.

12 E - Section 403(b) salary reductions. Your total “elective deferrals” to TIAA/Fidelity/Vanguard retirement plans. IRC Section 403(b) plan deferrals were generally limited to $16,500 in 2009 ($16,500 in 2010), with a $5,500 “catch-up” deferral permitted if you were age 50 or over ($5,000 in 2009). A further $3,000 “catch-up” is allowed under very limited circumstances, based on your deferral history and years of service at the University. With the help of TIAA-CREF, Human Resources will be sending out letters to all employees in February notifying employees of their maximum contribution limit for 2010.

12 G - Section 457(b) contributions. Any amount that you contributed to the Commonwealth’s Deferred Compensation Plan. Up to $16,500 could be additionally deferred into this plan in 2009 ($16,500 in 2010). The “over age 50” catch-up of $5,500 is also applicable, or a special catch-up provision is available near “normal retirement age”. Information on the plan along with contact information for the Commonwealth’s vendor (ING for 2009) can be found at [www.vadcp.com[(http://www.vadcp.com).

12 P - Excludable moving expense reimbursements. Non-taxable moving expenses for which you were reimbursed directly (not included in taxable wages in Box 1).

Box 13. The “Retirement plan” block must be checked if you contributed to any of the University’s tax deferred options, or if you were a participant in the University’s Optional Retirement Plan or the Commonwealth’s defined benefit plan through the Virginia Retirement Service (VRS). Thus, all UVA Employees who fall into this category will have an X in this block. By checking the “Retirement plan” block, an employer notifies the IRS that an employee’s eligibility for a deductible Individual Retirement Arrangement (IRA) is limited.

The Notice to Employee on the back of copy C includes information furnished by the IRS, and edited here to reflect applicability to circumstances at UVA, regarding income tax refunds, Form W-2 corrections, dependent care expenses, earned income credit, and other potentially important concerns of taxpayers.

UVA’s 2009 Form W-2 will consist of four original laser printed copies on a single perforated sheet. One of them will be marked COPY C FOR EMPLOYEE’S RECORDS, and should be retained permanently. We do not maintain a file of paper copies.

For employees who have not elected to receive their W-2 Electronically the W-2 will be sent directly from production to the Post Office, and then distributed via first class mail to home addresses, as they appear on the HRMS employee database. Addresses are generally maintained by each employee using employee self service and regularly print on paychecks and the online pay slips.

2009 Forms W-2 will be mailed as soon as possible, but no later than February 1, 2010. We will allow adequate time for the U.S. Postal Service to forward or return to us initially undeliverable forms prior to reissuing any statements. Please do not request duplicates prior to Monday, February 15. Your cooperation in this regard is appreciated. All requests for reissued Forms W-2 must be in writing, either in person, or by e-mail at payroll@virginia.edu. Requests for reissued 2009 Forms W-2 will be accepted starting on 2/15/2010. If you have any questions upon receiving your Form W-2, please call the Human Resource Service Center at 982.0123.

This page is an archived HR news item and may not reflect current university policies or procedures. Items with older posting dates may contain links to web pages that may be expired. References to individuals or groups may or may not be current or valid.