The University Record, February 6, 1996

Tips on interpreting your Form W-2 Wage and Tax statement

From the Payroll Office

Form W-2 Wage and Tax Statement for 1995 were mailed in mid-January to all regular and part-time U-M employees who received earnings in 1995.

The format of the 1995 Form W-2 (see illustration) is the same as last year.

Federal and state taxable wages listed exclude any tax-deferred retirement contributions. However, such contributions are subject to Social Security and Medicare tax and are therefore included in Social Security and Medicare wages.

Separate boxes on the W-2 indicate whether the staff member was enrolled in a retirement plan and the amount of retirement contributions that were "elective" tax-deferred contributions. The total tax-deferred retirement contributions are indicated in a separate footnote on the W-2.

Also excluded from federal/state and Social Security wages are any pre-tax health insurance and group life insurance premiums deducted in 1995, as well as dependent care/medical reimbursement account deductions. Dependent care deductions are summarized in a separate box on the W-2.

There also is a footnote showing the total of Flint/Dearborn/Ann Arbor United Way payroll deductions for 1995.

Staff members who had city income tax withheld in 1995 will receive a Form CW-2 for the appropriate city in a separate mailing.

Staff members receiving royalty payments during 1995 will receive a separate Form 1099-Miscellaneous Income for those payments.

Errors in Social Security numbers should be reported to the Payroll Office.

Questions about information on W-2 forms should be directed to the Payroll Office, G395 Wolverine Tower, 764-8267.

Individuals who have not yet received their W-2 forms should call 764-8250.