Change in tax method for faculty and staff recognition programs introduced

Effective Aug. 11, the way employees are taxed for awards (earnings code AWD) was changed to the supplemental tax rate set by the IRS, currently 25 percent for federal withholding.  Any applicable OASDI, Medicare, Additional Medicare or FICA Alternative deductions are in addition to the 25 percent supplemental tax rate.

While the majority of AWD payments are currently entered in ePAF, many are still entered on a paper form, routed to UFHR for approval and then sent to Payroll & Tax Services for payment on the off-cycle. However, this change in tax method will eliminate the need for the manual process, allowing all AWD payments to be entered in ePAF.

Departments are reminded that all awards paid to UF students should be processed through Student Financial Services, while non-employee and non-UF student award payments should be processed through Accounts Payable.

Questions? Contact Linda Orfield at lorfield@ufl.edu, Brian Kuhl at bkuhl@ufl.edu, or Robbie Elkins at relkins1056@ufl.edu.