Payroll Services

History of Other Taxable Compensation

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

 
 
Payroll Services, PO Box 641024, Washington State University, Pullman WA 99164-1024, 509-335-9575, Contact Us
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