U.S. tax law requires employers to report certain employee benefits as taxable fringe benefits. When an employee receives a per diem allowance for travel that does not require an overnight stay, the University is required to report the allowance as taxable income to the employee. This requirement applies regardless of whether the travel is in‑state…
As a result of the Tax Cuts and Jobs Act that went into effect on January 1, 2018, the exclusion/deduction for qualified moving expenses has been eliminated, and the University has adopted a moving allowance policy. If a department wishes to pay an amount towards relocation costs for a new hire, this will be paid…
By mid-February, many year-end tax documents have been issued and the tax filing season is gearing up. This time of the year brings many questions, such as: My department on campus received a 1099 Form – what do I do with it? I’ve received a tax form from UA, but I don’t know what it’s…
To avoid tax consequences on expense reimbursements, University employees should remember the 60-Day Rule: Expense reports for out-of-pocket expenses must be submitted within 60 days from the date the expense was incurred (in the case of travel, within 60 days from end of trip). Per federal tax regulations, expenses submitted after 60 days will be…
Educational benefits received by a University employee, his/her spouse, and/or child(ren) may be taxable to the employee. Some examples of taxable educational benefits include: Tuition benefits for a child who is not an IRS dependent of the employee, including a child who is age 24 or over during the calendar year Graduate level tuition benefits…
If so, you may have lots of questions! Here are some of the most common questions that we see on campus relating to stipends: How do I process a stipend payment? Is an independent contractor form required? Which payment system should be used? What procedures and documentation are required? Is the stipend taxable? Will taxes…
Beginning October 1, 2019, the City of Tuscaloosa and the City of Northport will implement a 1% sales tax increase. This means that the total sales tax rate in both cities will increase from the previous 9% to a rate of 10%. Any City of Tuscaloosa or Northport taxable sales made by the University starting…
