UNIVERSITY OF PITTSBURGH \ FORM INSTRUCTION GUIDE
FORM TITLE: TAX CALCULATION FOR EMPLOYEE/SPOUSE GRADUATE
EDUCATIONAL BENEFIT
NUMBER: FORM 0035-I
PROCEDURE: 07-11-01
TO BE COMPLETED BY HUMAN RESOURCES OR FACULTY RECORDS OFFICE
Enter the following information where indicated:
1. Name of Employee/Faculty Member (Last, First, Middle Initial)
2. Check to indicate scholarship type:
Faculty Staff
Faculty Spouse (check both) Staff Spouse (check both)
3. Name of Spouse if applicable (Last, First, Middle Initial)
4. Academic Term of the scholarship
5. Percent of Effort verified by Employee Record (Format: 100,
040)
Calculation of Credits and Tuition Charges
6. Invoice Credits - Post the number of credits from the invoice.
If credits are not posted due to First Professional Status,
refer to Tuition Rate Table to find appropriate credit value
using the tuition amount applicable to the School/Major Code.
Calculation of Eligible Credits:
7. a. Enter in decimal form the percent of effort determined in
step 3 above (e.g. 1.00, 0.40).
b. Multiply Maximum Eligible Credit Amount by the Percent of
Effort to determine number of Eligible Credits. Example:
Maximum Eligible Credits Percent of Effort Eligible Credits
6 x 0.40 2.4
8. Compare the Invoiced Credits to the resulting Eligible
Credits. The minimum value determines the number to be
entered in the area labeled Issued Credits. This is the
number of credits the scholarship is to be issued for.
Example:
Invoiced Credits Eligible Credits Issued
Credits
(6 x 0.40)
1 2.4 1
Calculation of Tuition Charges:
9. Enter the per credit Tuition Rate from the Tuition Rate Table
using the applicable School/Major Code.
10. Multiply the Tuition Rate by the number of Issued Credits
to determine the amount of issued tuition. Enter that dollar
amount on the Tuition Charges Line.
Calculation of Employee Payments
11. Truncated Integer Credits - Enter whole numbers only. When
the calculated eligible credits result in a decimal, drop the
numbers to the right of the decimal point. (Example: 2.4 =
2, 3.7 = 3) Do not round. Multiply the whole number of
credits by $5.00 per credit to determine employee payment.
12. Enter the dollar amount of employee payment on the Employee
Payments Line. (Payment values are limited to either $5,
$10, $15, $20, or $30.)
Calculation of Tax Liability
13. Calculate the value of the scholarship by subtracting the
Employee Payments from the Tuition Charges. Enter the
resulting dollar amount on Line 1.
14. Calculate the Federal and Social Security Tax liability by
multiplying the dollar amount on Line 1 by .2765. Round the
result to the nearest whole dollar amount and enter the
result on the Federal Income Tax Line.
15. Calculate the Scholarship Certificate Amount by subtracting
the sum of the Federal and FICA tax liability from the Value
of the Scholarship on Line 1, and enter the result on Line 2.
This amount is entered on the Employee/Spouse Graduate
Scholarship Certificate.
Processing Information
16. Initials of Human Resources/Faculty Records preparer
required.
17. Enter date prepared by Human Resources/Faculty Records.
TO BE COMPLETED BY PAYROLL DEPARTMENT
18. Social Security Number of Staff or Faculty Member.
19. Copy the dollar amount value of the scholarship from Line
1.
20. Copy the dollar amount of the Scholarship Certificate
(scholarship deduction) from line 2.
21. Record the (Hash) total of the above dollar amounts copied
from lines 1 and 2.
22. Determine and enter the Employee Pay Period End Date
(Format: MM/DD/YY)
23. Determine the deduction Start Date. (Format: MM/DD/YY)
24. Determine the deduction End Date. (Format: MM/DD/YY)
Processing Information
25. Initials of Payroll Department processor required.
26. Enter date processed by Payroll Department.
Distribution
Forward original (white copy) to Payroll Department.
Issue yellow copy to student.
Faculty Records retain and file pink copy.