2008 w-4 form

Welcome! HR Forum December 5, 2007 Human Resource Services University of Florida Today’s Agenda • December Leave Benefits • Tax Services Update • Early Holiday Payroll Deadlines • Optional Retirement Plan Florida Retirement System • Retirement Special Pay Plan • Signing-up for New Hire Benefits • Academic Personnel Website • Important Dates December Leave Benefits December Leave Benefits Holiday Closing Period December 24 designated a holiday for 2007. Decision based on proximity to regular holiday closing period and savings to the university. Allows the university to be closed for a total of 11 days, resulting in significant cost savings through energy consumption. December Leave Benefits Personal Leave Days Available for 12-month faculty and TEAMS employees. To be used during the period of December 26-31 unless employees are designated as “essential personnel” by dean or directors working with appropriate vice president. Additional information available via DDD: http://www.admin.ufl.edu/ddd/default.asp?doc=13.5.215 2.1 Vacation conversion • Vacation over max will convert to sick on January 10, 2008 TEAMS & Academic Personnel – 480 hrs USPS – 240 hrs • Vacation used by January 10, 2008 must be entered and approved in system by that date to avoid conversion Questions? Tax Services Update W-4 Information • W-4-- “EXEMPT FROM WITHHOLDING” for calendar year 2007 expires 2/15/08 – If not renewed, withholding tax will be computed based upon single marital status with zero allowances until new W-4 is filed • If W-4 information is not reflected in My Self Service, income tax is withheld at single and zero allowance rate as a default – Employees are required to file a Form W-4 through their HR department W-5 Information • W-5 filed to claim advance payment of earned income must be renewed before the first payroll is processed for the new calendar year in order to continue the advance EIC payment without interruption – The deadline to update in the system is December 18, 2007 2007 Withholding Tax Information • Excluded Employment forms (i.e. IRS 8233 and 673 forms) expire at the end of each calendar year – To continue the exemption for nonresident aliens working in the U.S. and U.S. Citizens working outside of the U.S. without interruption, an Excluded Employment form must be filed before December 7, 2007 2007 Withholding Tax Information • The new wage base limit for Social Security taxable wages for 2007 is $97,500.00 at 6.2% – There is no limit for Medicare taxable wages – In addition, the Social Security wage base is increasing to $102,000 for 2008 What’s New on the W-2 for 2007? • To protect the employee’s SSN from disclosure when employers furnish Forms W-2 using a window envelope and to enhance processing efficiency, some boxes on the form have been moved Employee’s Year End Statement • EYES • Home address or date of birth incorrect? – Info should be corrected by the employee filing a new W-4 form Total earnings that are added to your Gross Pay and are subject to federal income taxes are not Total earnings that added to your Gross Pay and are subject to federal income taxes Voluntary deductions the employee has elected to be deducted from their pay, such as health, life and dental insurance that are not subject to federal income taxes Taxable gross represents the total income before tax deductions Tax Deductions includes federal withholding taxes, social security taxes, and Medicare taxes. Social Security tax is computed at Other miscellaneous 6.2% of the first $97,500.00 in deductions (After Tax 2007 of taxable gross wages. Deductions) are voluntary deductions Medicare tax is computed at 1.45% thethe taxable has of employee gross elected to be deducted wages from their pay that are in 2007. subject to federal income taxes Net pay is the dollar amount left after all deductions and withholdings are taken. This is the amount the employee received through direct deposit to their bank account or an actual check issued to the employee. Non-cash fringe benefits are not included in “Total Net Pay” UF Contributions on Your Behalf are for your information only. It includes UF’s contribution for any deduction, including State Insurance program, health insurance subsidy, disability retirement benefit, and educational and/or administrative fees 2007 W-2 Forms • All monies included as 2007 earnings are based upon the payment date – Each payment dated in 2007 is included in 2007 earnings • If home address is incorrect, info should be corrected by the employee filing a new W-4 form through HR • W-2s will be distributed on or before 1/31/08 2007 W-2 Forms • If an employee received any payment during the year under an incorrect social security number, a copy of social security card should be forwarded to Tax Services so earnings record can be corrected • Duplicate W-2s may be requested from Tax Services by downloading the W-2 or 1042S Duplicate Request form at http://fa.ufl.edu/forms/ 2007 W-2 Forms • W-2 Box 10 shows total dependent care benefits under a dependent care assistance program (section 129) paid or incurred by the employer for the employee – If employee participated in the Pretax Benefits Program for Dependent Care, amount will be indicated • Other details are provided in the handout Early Holiday Payroll Deadlines Early Holiday Payroll Deadlines • December Payroll Schedule – Two Points 1. Adjustment processing & Tax Reporting Adjustment processing: through 12/11is a 2007 transaction All Adjustments after 12/11 are 2008 transactions 2. Accelerated Payroll Processing Pay day for 12/21/07 is normal schedule Pay day for 1/4/08 Confirms on 12/19/07 ORP to FRS One-Time Election Window • Active SUSORP participants will be provided with a one-time opportunity to transfer from the SUSORP to either the FRS Pension Plan or the FRS Investment Plan. • Election for change may be made from Jan. 1 – Dec. 31, 2008. The earliest effective date for change would be 2/1/08. Change to Pension Plan • Participant will receive service credit for the total number of years in the SUSORP. The cost to “buy back” into the Pension Plan is based upon the actuarial accrued liability for this service. • Must first be paid using funds in his/her SUSORP account. • Remaining cost must be paid from other resources if SUSORP account balance is insufficient. Change to Investment Plan • If an SUSORP participant elects to transfer to the Investment Plan, the funds in his/her SUSORP account will remain in the SUSORP. • Future employer contributions will be deposited into participant’s Investment Plan account. ORP to FRS • If a participant opts to change from the ORP to one of the other FRS plans, he/she may have one additional opportunity to elect to switch to the other FRS plan. • This option may be exercised during the participant’s active career under the FRS. ORP to FRS • Letters were sent directly to eligible active SUSORP participants at the end of November. • To view a copy of this letter, please visit http://www.hr.ufl.edu/benefits/orp/SUSORP_letter_nov07.pdf • Clinical faculty who are mandatory participants of the SUSORP are not eligible to make this election. ORP to FRS • To request an estimate of the Pension Plan buyin cost, you should contact the Division of Retirement at: 1-866-446-9377, Option 3, prior to making your election. Retirement Special Pay Plan Retirement Special Pay Plan What is it? It is a 401 (a) retirement plan for sick and vacation payments at the time of separation of salaried (non-OPS) employees. Implemented 11/29/2006 Retirement Special Pay Plan (continued) Who participates? Faculty, TEAMS, and USPS employees with payments of $2,000 or more from sick and vacation cash-out. Employees entering (or exiting) DROP Retirement Special Pay Plan (continued) Advantages: Contributions are pre-tax. Federal income tax deferral. Employee and employer save 7.65% Social Security and Medicare tax. Account balance is portable. No administrative fees. Retirement Special Pay Plan (continued) Make Whole Provision • There is a 10% IRS tax (in addition to 20% withholding tax) imposed on employees under 55 years of age who wish to withdraw their funds. • UF will pay the 10% - less employee’s portion that would have been paid in Social Security and Medicare taxes under certain conditions. • Employee must request a withdrawal of the entire payment and request to be “made whole” within 60 workdays from date of termination. Retirement Special Pay Plan (continued) • Timely processing of termination and ePAF for leave cash-out. • Please discuss the leave cash-out process with employees that are leaving the university. • Additional Education Sessions are being planned for the spring. • Additional information and a taped educational session may be viewed at the following web site: http://www.hr.ufl.edu/benefits/specialpayplan.htm Signing-up for New Hire Benefits Effective 1/1/08 For Benefits effective 1/1/08 • • Hire date must be effective in the month of December or earlier and processed in the UF payroll system. TEAMS hires should attend the next available New Employee Orientation (NEO) session. – 12/4 – 12/7 8:30-12:30 8:30-12:30 HSC Rm. G307 HRS Bldg. Rm. 120 – 12/21 8:30-12:30 HRS Bldg. Rm. 120 (Can request coverage effective 1/1/08, but will experience a delay due to premium collections) • New Faculty or a TEAMS hire who is unable to attend NEO – should view the benefits tutorial on the HR web site at: http://www.hr.ufl.edu/benefits/insurance.htm 2 Ways To Enroll in Benefits • Complete enrollment online via People First (as long as their UF appointment has been processed in our payroll and sent to People First) • Employees who want assistance with completing the online enrollment may attend a Benefits Enrollment session: – 12/6 1:30-3:30 HRS Bldg. Rm. 119 – 12/10 1:30-3:30 HRS Bldg. Rm. 119 – 12/21 1:30-3:30 HRS Bldg. Rm. 119 (Can request coverage effective 1/1/08, but will experience a delay due to premium collections ) Early deadlines • Due to the holidays and early payroll closing, new hire appointments should be sent by the following deadlines: Submit new hire /appointments changes to HR by: Benefits deadline to capture deductions for the affected payday Payday 12/21/07 • • 12/10/07 12/10/07 Benefit deductions not taken on the 12/21/07 payday must be paid by personal check. Checks collected after 12/10/07 may have some delay with January coverage. Academic Personnel Website der Un tion c tru s on C We want to hear from you! www.hr.ufl.edu/academic2 • What works well? Did you find what you were looking for? • What doesn’t? Where did you get lost? • What are we missing that would be helpful to you or the faculty with whom you work? Important Dates Important Dates • December 3rd Registration for Spring Training Opened Minimum Wage Increase Next HR Forum Martin Luther King Holiday • January 1st • January 16th • January 21st Thank you for attending & Happy Holidays!