1993 Deficit Reduction Tax Law (effective 01/01/94):
Taxable Moving Expenses:
- Meals while in transit to new location
- Premove house hunting trips
- Temporary residence
- Storage costs in excess of 30 days
- Selling expenses of the old residence plus acquisition costs of the new residence
Earnings Type on PEARS and HEPPS QPREXP:
MOV Moving Expenses Taxable
Subject to OASI, Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject MV
MOF Moving Expenses Taxable Federal Employee (Fed Ret Plan Code 6, 7, 8)
Subject to Fed Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject MV
March 1, 1996 – Bonus Earnings for Certain Faculty Title Codes That Meet Enrollment Targets:
Earnings Type on PEARS and HEPPS QPREXP:
BON Bonus – Extra Compensation
Subject to OASI, Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject AF
July 1, 1997 – Award Earnings Types Created to Isolate and Facilitate Taxation:
Earnings Type on PEARS and HEPPS QPREXP:
AWD Award – Extra Compensation
Subject to OASI, Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject AW
AWN Award – Nonfederal Employee
Not subject to OASI, Medicare, Fed Medicare
Not subject to Retirement
Subject to Federal Income Tax
01 Object Subobject AW
January 1, 1997 – Congress Fails to Renew IRS Section 127 Exclusion of Graduate Level Courses from Taxation:
Earnings Type on PEARS and HEPPS QPREXP:
TUI Tuition Taxable Nonfederal Employee
Subject to OASI, Medicare, Fed Income Taxes
Not subject to Retirement
FTU Tuition Taxable Federal Employee (Fed Ret Plan 6, 7, 8)
Subject to Fed Medicare
Not subject to Retirement
Payroll withholds taxes on the value of tuition. Unlike the other earnings types in this document where extra compensation is being paid and taxed, here the value of tuition is added to the Payroll System for taxation purposes only, i.e., no extra compensation is being paid.
January 1, 2000 – IRS Meeting With OFM Leads to this Classification:
The value of meals for non-overnight travelers becomes taxable as additional compensation with payment being made through the Payroll System. The IRS considers meals reimbursement under the "3 hour rule" a taxable fringe beneFederal Income Tax to the employee.
Earnings Type on PEARS and HEPPS QPREXP:
MLS Meals Nonfederal Employee
Subject to OASI, Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject MT
FML Meals Federal Employee (Fed Ret Plan 6, 7, 8)
Subject to federal Medicare
Not subject to Retirement
01 Object Subobject MT
January 1, 2000:
Mileage reimbursements on account of employee moves become partially taxable as additional compensation with payment being made through Payroll Services. WSU reimburses 31 cents per mile. The IRS allows 10 cents as nontaxable which leaves 21 cents taxable to the employee.
Earnings Type on PEARS and HEPPS QPREXP:
MOV Moving Expenses Taxable
Subject to OASI, Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject MV
MOF Moving Expenses Taxable Federal Employee (Fed Ret Plan 6, 7, 8)
Subject to Fed Medicare, Federal Income Tax
Not subject to Retirement
01 Object Subobject MV