Employee Matters

January 16, 2007

This column is prepared by staff from the Office of Human Resources. E-mail questions to benefits@ohr.wisc.edu or call 262-5650. For more information, visit Employees Payroll and Benefits Services.

Year-end Statements

This article is about three 2006 year-end tax statements produced from the Office of Human Resources (OHR): W-2, 1042-S, and Fellowship/Scholarship information letter. These statements contain information that may have to be reported on your annual tax forms.

Who will receive a W-2?

All employees of the UW System who received reportable income in 2006, including rehired annuitants and some international visitors, receive a W-2. This includes all reportable income paid in 2006 (with the exception of those who received treaty benefits, see below) and any other payments or taxable fringe benefits required to be reported on this form.

What information is included on a W-2?

Social Security number; income subject to and the amount of tax deducted for federal, Social Security and state taxes; advanced earned income credit; dependent care and medical employee reimbursement (ERA) contributions; state group life premiums on coverage in excess of $50,000; tax sheltered annuities and deferred compensation contributions; taxable educational assistance; taxable and nontaxable reimbursement for moving expenses; and pre-tax premiums for major medical (EPIC), state group health, state group life, vision, dental and transportation expenses.

Will foreign nationals receive other forms?

Yes, if you received treaty benefits in 2006 you will receive a 1042-S. You may also receive a W-2 for wages beyond what is allowed under their treaty benefits. Fellowship stipends paid to nonresident aliens will also be reported on their 1042-S.

What information is included on a 1042-S?

Social Security number or ITIN; income code; gross income paid; withholding allowances; net income; tax rate; exemption code; federal tax withheld; and country code (country of permanent residence).

What is a Fellowship/Scholarship informational letter?

This letter contains the amount of payment you received from one of these appointment titles: advanced opportunity fellow, fellow, graduate intern or trainee, scholar, trainee or postdoctoral fellow, scholar or trainee. It may or may not be reportable for tax purposes. IRS Publication 970 can help you determine if you must report these payments on your federal tax return.

When should I expect to receive my year-end tax statements?

They should begin arriving after Monday, Jan. 22. Duplicate statements will be produced after Monday, Feb. 12, for the 2006 tax year. If needed, a duplicate statement can be ordered by calling 262-5931, or your department can request one for you using this online form.

Could I receive other non-Office of Human Resources year-end tax forms?

Yes, examples of other year-end tax forms produced outside of OHR include: 1098-T (tuition), 1098-E (interest on student loans), 1042-S and 1099-MISC (the latter both relating to accounts payable payments).

Where can I find more information?

More information can be found at the Employee Taxes menu.