COMPTROLLER'S OFFICE
The W-2 Form for Calendar Year 1998
The University has recently mailed nearly 28,000 Calendar Year (CY) 1998 W-2 Forms to our employees' home addresses as they appear on the current Payroll File (Employee Database). Accordingly, it is now appropriate to publish an explanation of some of the amounts and other data that appear on your W-2 Form in order to assist you in preparing your Federal and State Income Tax Returns.
An explanation of the contents of the various boxes on the form is as follows:
A. Wages, tips, other compensation: this represents the total amount of Federal Taxable compensation paid or imputed to you during calendar year 1998 through the University Payroll System.
This amount includes:
- a. The value of your taxable graduate and/or professional tuition benefits,
if you, your spouse and/or your dependent children have received such benefits;
- b. The value of Group Life Insurance coverage for amounts greater than $50,000. The premium payments for this excess coverage, if any, have been included as imputed income (see Excess Insurance Premium--below);
- c. Certain other fringe benefits relating to imputed income are included here as well. If you have received any of these benefits, you will be or were contacted individually concerning their taxability.
- Amounts which are excluded from this amount are:
- d. Tax deferred annuity contributions (i.e., TIAA/CREF);
- e. Health and Dental insurance premiums that have been sheltered;
- f. Amounts voluntarily contributed to a dependent care or medical reimbursement account.
- b. The value of Group Life Insurance coverage for amounts greater than $50,000. The premium payments for this excess coverage, if any, have been included as imputed income (see Excess Insurance Premium--below);
B. Federal income tax withheld: this represents the amount of Federal Income Tax which was withheld from your earnings during the year and paid to the Internal Revenue Service, on your behalf, by the University.
C. Dependent care benefits: this represents the total amount which you have voluntarily "sheltered" for dependent care expenses, regardless of whether you have been reimbursed by the University for the expenses associated with this "shelter" as of December 31, 1998.
D. Social security wages: this represents the total amount of compensation paid to you during calendar year 1998 which was subject to Social Security (FICA/OASDI) tax, including all of your tax deferred annuity contributions and excess life insurance premiums, if applicable, but excluding health and dental insurance premiums and any voluntary dependent care or medical reimbursement account contributions which you have "sheltered".
E. Social security tax withheld: this represents the total amount of Social Security (FICA/OASDI) tax which was withheld from your earnings during the year and paid to the Social Security Administration, on your behalf, by the University.
F. Benefits included in box 1: if you have received certain fringe benefits, the value of such benefits is shown here, and is also included in Box 1, Wages, tips, other compensation. These benefits include the value of taxable graduate and/or professional tuition benefits and other benefits relating to imputed income. If you have received any of these benefits the University has recently advised you, individually and personally, concerning their taxability; please refer to those communications specifically.
G. Medicare wages and tips: this represents the total amount of compensation paid to you during calendar year 1998 which was subject to Medicare tax, including all of your tax deferred annuity contributions and excess life insurance premiums, if applicable, but excluding health and dental insurance premiums and any voluntary dependent care or medical reimbursement account contributions which you have "sheltered".
H. Medicare tax withheld: this represents the total amount of Medicare tax which was withheld from your earnings during the year and paid to the Social Security Administration, on your behalf, by the University.
I. Excess insurance premium: the Internal Revenue Service requires that the premiums paid by an employer for group life insurance coverage in excess of $50,000 be imputed as income to the employee. The amount which appears in Box 13 and labeled (C) is the value of the premiums paid for this excess insurance coverage. This amount is based on an Internal Revenue Service (IRS) table which identifies premiums for different age groups.
J. Tax deferred annuity contributions: this represents the total amount of contributions made by an employee to a retirement plan on a tax-deferred basis. The amount is shown in Box 13 and labeled (E).
K. Excludable moving expense reimbursements: this represents the nontaxable moving expenditures that were paid to you as a reimbursement or paid directly to a third party. The amount is shown in Box 13 and labeled (P). If any reimbursements or third party payments were deemed to be taxable income you were notified of these amounts under separate cover.
L. Employee's social security number: this is the number that the Federal and State Governments use to identify you with the tax returns that you file, so please review it for accuracy. If the number is incorrect, then the University Payroll system is also inaccurate and you should contact the Payroll Office, immediately, before you file your returns.
M. State wages, tips, etc.: this represents the total amount of compensation paid to you during calendar year 1998 which was subject to Pennsylvania State Income Tax, including all of your deferred annuity contributions, if applicable, but excluding health and dental insurance premiums and any voluntary medical reimbursement account contributions which you have "sheltered".
N. State income tax: this represents the total amount of Pennsylvania State Income Tax withheld during calendar year 1998 and paid to the Commonwealth of Pennsylvania, on your behalf, by the University. If you do not live in Pennsylvania and if you submitted the "Employee Statement of Non-Residence in Pennsylvania" form to claim exemption from Pennsylvania State Income Tax, no amount will be reflected in this box.
O. Local wages, tips, etc.: this represents the total amount of compensation paid to you during calendar year 1998 which was subject to Philadelphia City Wage Tax, including all of your deferred annuity contributions.
P. Local income tax: this represents the total amount of Philadelphia City Wage Tax withheld from your earnings during calendar year 1998 and paid to the City of Philadelphia, on your behalf, by the University.
When you receive your W-2 form, please review it immediately to ensure that your name is spelled correctly and that your Social Security number is correct. If you feel that any information on your W-2 is incorrect, review your calculations carefully and compare the information on the form with your final 1998 pay stub.
If you have availed yourself of certain taxable benefits please review any additional information which was provided to you, under separate cover, concerning these benefits and their impact on your tax status. If you still believe that your W-2 is in error, please contact the W-2 Office at 573-3277 or write to W-2 Office, Room 310, Franklin Building/6284.
You should have received, via the U.S. Postal Service, your Federal and State Income Tax Forms and related instructions for filing. Federal Tax forms are available at the Internal Revenue Service, 600 Arch Street, Philadelphia, or by calling (800)TAX-FORM. Pennsylvania Income Tax forms are available at the State Office Building, 1400 Spring Garden Street, Philadelphia, or by calling (888)PA-TAXES. Federal and State forms are also available at many libraries and U.S. Post offices.
--Marstin Alexander, Associate Comptroller
Almanac, Vol. 45, No. 19, February 2, 1999