PAYROLL ACCOUNTING FOR AND TAX REPORTING OF MANDATORY DEDUCTIONS …

Short Description
Refer to Accounting Manual chapter T-182-77, Taxes: Taxation of … those employees covered (see Accounting Manual chapter …

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Content
PAYROLL: ACCOUNTING FOR AND TAX REPORTING OF MANDATORY
DEDUCTIONS AND INSURANCE BENEFIT CONTRIBUTIONS
ACCOUNTING MANUAL
P-196-11
Page 1
TL 81 6/30/99
PAYROLL: ACCOUNTING FOR AND TAX REPORTING OF MANDATORY
DEDUCTIONS AND INSURANCE BENEFIT CONTRIBUTIONS
Contents
Page
I. Introduction 2
II. Procedures 2
A. Wage Payments (Payroll Items) 3
B. Employee Death Payments 7
III. Responsibilities 9
IV. References 9PAYROLL: ACCOUNTING FOR AND TAX REPORTING OF MANDATORY
DEDUCTIONS AND INSURANCE BENEFIT CONTRIBUTIONS
P-196-11
Page 2 ACCOUNTING MANUAL
*Change 12/30/93 TL 59
PAYROLL: ACCOUNTING FOR AND TAX REPORTING OF MANDATORY
DEDUCTIONS AND INSURANCE BENEFIT CONTRIBUTIONS
I. INTRODUCTION
All payroll payments made to employees, including student employees, by the University are subject to consideration for various types of mandatory deductions and/or insurance benefit contributions. Federal and State taxing agencies require reporting of these payments and related tax withholding, if any, on designated forms. This chapter identifies typical payments made to employees, and, for each payment, indicates the appropriate tax code (where applicable), whether such payment is subject to deductions for taxes, deductions for retirement purposes, contributions by the University to insurance carriers and to self-insurance reserves for insurance benefits, whether tax identification is required, and the specific form(s) to be used for tax reporting to the Federal and State tax agencies.
II. PROCEDURES
Separate tables are utilized for wage payments (payroll items) and deceased employee payments. The tables are organized in columns in which, for each payment, an appropriate entry has been made to indicate whether the payment is subject to…