Unit: Payroll

If an employee has an amount reported in box 12 of their Form W-2 (Code W) for employer contributions to your health savings account (including contributions through a cafeteria plan), then the employee should complete IRS form 8889 Health Savings Account.

Starting in 2021, employers may truncate taxpayer identification numbers (TINs) on form W-2s distributed to employees.

Per Internal Revenue Service (IRS) guidance, forms 1095-B and 1095-C are for record keeping purposes only and are not required to be filed with an individual’s 2020 tax return. Currently, the forms will be mailed or electronically distributed by March 2, per IRS requirements.

Illinois State University employees may be eligible for the federal Earned Income Credit (EIC). It is a benefit for working individuals with low to moderate income. To qualify, individuals must meet certain requirements and file a tax return, even if individuals do not owe any tax or are not required to file. The EIC reduces

The IRS encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.” This will help you make sure you have the right amount of tax withheld from your paycheck.

The IRS released the 2021 form W-4, employee’s withholding certificate. The 2021 form W-4 is different from previous versions prior to 2020 due to the federal tax law changes that took place in 2018.

To continue your exemption from tax withholding for 2021, you must provide a new form W-4 to the University Payroll Office by February 15.

Under IRS regulations, employees are subject to Federal and State income and withholding taxes on the value of their personal use of an employer-provided vehicle. These regulations allow employers the option not to withhold income taxes on this value. Employers are still required to include this value on the Form W-2 employees will receive.

As the semester comes to a close, employees should be aware of the Friday, December 23 pay date and university closures.