Important Payroll Information

January 21, 2021

2020 Year End Tax Forms

• W-2 Wage and Tax Statement
  2020 W-2 Forms are now available in Workday in the Pay worklet under “My Tax Documents.” All employees have access to print their W-2’s. 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 from Workday.
• 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 University medical benefits. Equifax will mail the 1095-C to the home address on file by Monday, March 1, 2021. A paperless option is not yet available. Please note, this form is not required to complete your taxes.
• 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, who 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, 2021, to the home address on file. 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 Sunday, January 31, 2021. If you have any questions related to Form 1098-T, contact ‘Canes Central at 305-284-IBIS (4247) or click here.

2021 Social Security Limit

The Social Security wage base limit has increased from $137,700 to $142,800. Based on this new amount, the maximum Social Security tax payable by each employee is $8,853.60, 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 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.

2021 Federal Income Tax Withholding Form W-4

To make adjustments to your income tax withholding Form W-4 for 2021, visit the Payroll worklet in Workday, under Withholding Elections. Form W-4, Employee’s Withholding Certificate, was updated by the Internal Revenue Service (IRS) in 2020. If you wish to exempt yourself from tax withholding for 2021, you must complete Form W-4 no later than Friday, January 29, 2021. For those with an exemption on file, it will expire on February 15, 2021. If a new form is not submitted for exemption, the W-4 will be changed to the default status, single with no other adjustments, as required by the IRS. For more information on Form W-4, including how to complete the form, click here.

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.

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 questions, please contact HR-Total Rewards, your pay and benefits team, by completing the online inquiry form or calling 305-284-3004.

Thank you.

Human Resources