End of the year tax housekeeping tips
The University Payroll Office encourages all employees to maintain accurate iPeople addresses throughout the year. However, as the 2013 calendar year concludes, it is especially important for tax purposes.
Although W-2s will be available online, a paper form will also be mailed by January 31, 2014. The Payroll Office home page will be updated with a notice when the forms are mailed. Each year, a significant number of Form W-2s are returned to Payroll due to incorrect addresses.
To easily confirm a mailing address, simply review it in upper-left corner of the pay advice located by logging into iPeople and selecting Self Service-Payroll & Compensation-View Paycheck. Employees may make address changes by following the instructions posted online. Changes should occur no later than January 5, 2014, to be included in the 2013 Form W-2 processing.
For certain foreign employees, the 2013 1042-S Forms (Foreign Person’s U.S. Source Income Subject to Withholding) will be mailed by March 15, 2014, as required under Internal Revenue Service regulations. Again, the Payroll Office home page will be updated with a notice when those forms are mailed.
Form W-4 notices
Now is also a good time for employees to review their current Form W-4 (Employee’s Withholding Allowance Certificate) status for preferred changes in filing status and/or number of allowances needed for tax year 2014. Current tax withholding elections may be easily viewed in the upper-right corner of the pay advice found in iPeople and selecting Self Service-Payroll & Compensation-View Paycheck.
Claimed tax exempt for 2013?
All employees who claimed total exemption from income tax withholding in 2013 must submit a new 2014 Form W-4 by February 15, 2014, to continue to claim exemption from withholding in the new year. After that date, Illinois State must begin withholding income tax if the 2014 Form W-4 is not submitted.
W-4 requirements for international employees
International nonresident employees must not fill out a new W-4 or make changes to an existing W-4 without guidance from a tax specialist in the Comptroller’s Accounting office. If applicable, treaty benefits need to be renewed each calendar year. For information on contacting or scheduling an appointment with a campus tax specialist, call (309) 438-3106 or e-mail firstname.lastname@example.org.
The following resources may be helpful to employees making withholding decisions: