FAQ - W2

Box 1 reflects your TAXABLE earnings. That is, total earnings minus all tax-sheltered deductions. Box 3 and/or Box 5 reflect your Social Security/Medicare eligible earnings. Some deductions from your pay influence one or all of these taxable earnings. Here are several deductions that reduce your total gross for tax reporting purposes:

• DCP* – Mandatory Defined Contribution Plan deductions
• 403(b)* – Voluntary contributions to tax deferred retirement arrangement
• 457(b)* – Voluntary contributions to tax deferred retirement arrangement
• DepCare** – Dependent Care deductions
• HCRA** – Health Care Reimbursement Account contributions
• Health Premium deductions** (if enrolled in TIP)
• Pre-Tax Parking deductions**

*Reduces Federal and State Income taxable grosses only

**Reduces Federal, State, OASDI and Medicare grosses

If you have Box 5 gross, but not Box 3 gross, you probably are not participating in service credit accrual within the University's Retirement Plan.

Box 12 shows the total amount of medical insurance coverage deducted from the employee paycheck, as well as the employer contribution. The information is for reporting purposes only and is not taxable to the employee.

Box 13 is checked anytime an employee has a DCP (Defined Contribution Plan) deduction during the year. Since limited status employees generally pay DCP, the box is checked. DCP is a form of a "retirement arrangement." And participation in DCP is not optional. The only exceptions to DCP deductions are for students who are enrolled at least half time during academic sessions, and non-resident aliens who are present in the U.S. under the F-1 or J-1 visa programs.

Only the amount in box 14 that is indicated as "Other Income Included in Box 1" is included in box 1.

Here are some fringe benefits that may appear in Box 14:

• Domestic Partner Imputed Income
• Executive Auto Imputed Income

Your UCRP contribution information can be found on your last earnings statement for the calendar year. Log on to At Your Service. Under Income and Taxes, select Earning Statements.

For tax reporting purposes, wages are reported when they are paid, rather than when they are earned. December earnings are paid on the first banking day in January and are therefore reported in the new tax year.

• Review all your pay stubs with a pay date in the year in question.
• Add the taxable gross columns (not gross columns) of the paycheck stubs.
• Verify that the taxable gross sum matches the taxable gross listed on your W-2 statement.

If they do not match, please contact Payroll Services at 510-642-1336 or payhelp@berkeley.edu.

Social Security (OASDI) Tax Rate: 6.2% paid by employers and 6.2% paid by employees (for 2010).

Medicare Tax Rate: 1.45% paid by employers and 1.45% paid by employees.

The 2010 OASDI Wage Base is $106,800.

All wages are subject to Medicare (no limit).

Yes, work-study is reportable income.

Form 1098T is issued by an outside agency, UC Education Credit Reporting Services. Information is available from the ACT 1098T Website or by calling 1-877-467-3821.

The Payroll Office cannot supply tax return forms, but see next question.

Tax return forms are available from the following websites:

• Internal Revenue Service (Federal)
• Franchise Tax Board (State of California)
• Federation of Tax Administrators for filing with states other than California

Tax help can be obtained by calling:

• Internal Revenue Service: 1-800-829-1040
• Franchise Tax Board: 1-800-852-5711