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2019 Year End Tax Forms
- W-2 Wage and Tax Statement
2019 W-2 Forms are now available in Workday in the Pay worklet under My Tax Documents. Employees who did not opt-out of paper statements will be receiving their W-2 Form in the mail to the home address on file by Friday, January 31, 2020. If you have not received your W-2 Form by the end of January, please review the Payroll: W2 Tip Sheet to print a copy.
- 1095-C Employer-Provided Health Insurance Offer and Coverage
The University is required to send a 1095-C form as part of the Patient Protection and Affordable Care Act to all employees who are eligible for UM medical benefits. Equifax will mail the 1095-C to the home address on file by Friday, February 28. A paperless option is not yet available.
- 1042-S Foreign Person’s U.S. Source Income Subject to Withholding
If you are a Foreign National employee or student with a nonresident tax status that received a scholarship/fellowship or income payment from UM and used a tax treaty to exempt some or all of your payments from federal withholding taxes, you will be issued a 1042-S. Forms will be sent via US mail prior to March 15, 2020. Note: In certain cases, a person who receives a 1042-S may also receive a W-2 in the same tax year.
- 1098-T Tuition Statement
The 1098-T is an annual statement that provides students with the payments received for qualified tuition and related expenses, amounts received in scholarships, grants, and adjustments made for a prior year. The form is used to assist students in determining eligibility for an Education Tax Credit. The tax forms are mailed and postmarked to students by Friday, January 31, 2020. If you have any questions related to Form 1098-T, contact the Office of Student Account Services at 305-284-6430, and select option 5 or click here.
2020 Social Security Limit
The Social Security wage base limit has increased from $132,900 to $137,700. Based on this new amount, the maximum Social Security tax payable by each employee is $8,537.40, or 6.2% of the wage base.
The Medicare tax rate remains at 1.45% of all earnings. Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes.
The flat tax rate for withholding income tax from supplemental wages remains at 22% and at 37% for supplemental wages over $1 million.
New 2020 Federal Income Tax Withholding Form W-4
Due to the Tax Cuts and Jobs Act (TCJA) of 2017, the Internal Revenue Service (IRS) released a new version of the income tax withholding Form W-4 for 2020. The new Form W-4, Employee’s Withholding Certificate, is different from previous versions, but the IRS is not requiring all employees to complete the revised form and has designed the withholding tables to accept both the new and prior-year forms. For more information on the new Form W-4, click here to review frequently asked questions published by the IRS.
Federal income withholding tax brackets remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Note: If you do not submit a new form, withholding will continue based on your previously submitted form. New employees hired in 2020 and existing employees who make withholding changes during 2020 are required to complete the new Form W-4.
Resources
- For more information on completing or updating year end tax forms, click here to review frequently asked questions.
- Visit the Tax Withholding Estimator to perform a quick “paycheck checkup” and determine if withholding adjustments are needed. To effectively use the estimator, it is helpful to have a copy of your most recent pay stub and tax return.
- Contact your tax advisor for detailed questions regarding your personal taxes.
If you have any additional questions, please contact HR-Total Rewards, your pay and benefits team, by completing the online form here or calling 305-284-3004.
Thank you.
Human Resources
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