As 2008 draws to a close and the tax filing season approaches, we wish to remind you of important tax information and the timelines for reviewing your current elections and reporting changes.  Please follow the links below for more information.    

GO GREEN – OPT for W-2 ELECTRONIC CONSENT by JANUARY 15, 2009  

SIGN UP FOR ELECTRONIC W-2 DELIVERY THROUGH JANUARY 15, 2009………AND SUPPORT DREXEL’S GREEN INITIATIVE!  Save paper by printing only the copies you need.  Your delivery option remains in effect until you change it.  Be sure to verify your current W-2 delivery option in DrexelOne at http://one.drexel.edu/. 

Instructions for accessing the Electronic W-2 Consent Form are available at http://www.drexel.edu/depts/compt/payroll/w2_consent.html.

If you do not opt for electronic delivery, a paper W-2 Form will be mailed to your employee home address as it appears in DrexelOne, postmarked by February 2, 2009.  Verify your address (see below) to insure delivery.       

VERIFY YOUR HOME ADDRESS by DECEMBER 31, 2008 for PAPER W-2 HOME DELIVERY

Make sure your employee home address is up to date in DrexelOne.  To view your employee home address, follow the instructions at http://www.drexel.edu/depts/compt/payroll/emp_homeaddress.html.  By December 31, 2008, report changes to Human Resources at hris@drexel.edu. Paper W-2 Forms will be mailed to your employee home address as it appears in DrexelOne as of that date.  To ensure prompt delivery of all payroll information, please update your address regularly throughout the year as changes occur.

IMPORTING W-2 DATA into TURBOTAX for 2008 TAX FILING

REVIEW YOUR W-4 EXEMPTIONS for FEDERAL TAX WITHHOLDING from YOUR PAY

The marital status and number of allowances you claim on your W-4 Form (Employee’s Withholding Allowance Certificate) determine the federal income tax withheld from your pay.  To review your current W-4 Form in DrexelOne, follow the instructions at http://www.drexel.edu/depts/compt/payroll/w4_one.html.  Changes in your marital status, number of dependents, income or itemized deductions may require a change to your W-4. 

Neither the Payroll Department nor the Tax Office can advise you on the number of allowances to claim.  The Internal Revenue Service (“IRS”) offers assistance in Publication 919.  Both Publication 919 and the W-4 Form are available on the IRS website at http://www.irs.gov.  To change your federal tax withholding, print and complete the W-4, then send it to the Payroll Department, 3201 Arch Street, Suite 400 (or fax the form to Payroll at 215-895-1615).  You may submit a revised W-4 Form anytime during the year as your tax status changes.         

EXEMPTION from FEDERAL TAX WITHHOLDING EXPIRES on FEBRUARY 16, 2009

ADVANCED EARNED INCOME CREDIT (“EIC”)

Employees who claim the EIC for 2008 must submit a new W-5 Form (Earned Income Credit Advance Payment Certificate) to receive the credit in 2009.  All 2008 W-5s expire on December 31, 2008.  To renew the EIC, submit a 2009 W-5 to the Payroll Department, 3201 Arch Street, Suite 400 (or fax the form to Payroll at 215-895-1615) by December 31, 2008.  The 2009 W-5 Form will be available on the IRS website at http://www.irs.gov in late December.

For 2008, you may qualify for the EIC if you (a) do not have a qualifying child and earn less than $12,880 ($15,880 if married filing jointly), (b) have one qualifying child and earn less than $33,995 ($36,995 if married filing jointly), or (c) have more than one qualifying child and earn less than $38,646 ($41,646 if married filing jointly). You and your qualifying children must have valid social security numbers. You cannot take the EIC if your investment income is more than $2,950. If the EIC is more than your tax liability, it is refunded to you but only if you file a tax return. If you have at least one qualifying child, you may get as much as $1,750 of the EIC in advance throughout the year by completing Form W-5 and forwarding it to Payroll.

INCREASE in SOCIAL SECURITY WAGE BASE for 2009

The IRS has increased the 2008 social security wage base from $102,000 to $106,800 in 2009.  The tax rate will remain at 6.2% for a maximum employee withholding of $6,621.60 in 2009, an increase of $297.60 over 2008.  All wages paid on or after January 1, 2009, regardless of when the services were performed, are subject to social security tax up to the 2009 annual limit.

For assistance or more information, contact the Payroll Department at payroll@drexel.edu or 215-895-2885.