UNIVERSITY OF PITTSBURGH \ FORM  INSTRUCTION GUIDE



FORM TITLE:          TAX CALCULATION FOR DEPENDENT EDUCATIONAL
                     BENEFIT FOR OTHER EDUCATIONAL INSTITUTIONS
NUMBER:              FORM 0035
PROCEDURE:           07-11-01



TO BE COMPLETED BY FACULTY RECORDS OFFICE (NOTE:  Only the
Faculty Records Office processes FORM 0035.)

Enter the following information where indicated:

1. Name of Employee/Faculty Member (Last, First, Middle Initial)

2. Social Security Number of Employee/Faculty Member

3. Name of Dependent (Last, First, Middle Initial)

4. Check to indicate scholarship type:

      Faculty         Staff       Term

Calculation of Education Benefit Amount

5. Calculate the Value of the education benefit by multiplying
   the credits by the tuition rate.  From this amount subtract
   the whole number of credits multiplied by $5.00 per credit.
   Enter this figure on Line 1.  This amount will be added to
   the gross earnings on paycheck stub labelled "SCH VALU."

Calculation of Tax Liability

6. Calculated tax liabiality:

   a. For highly compensated employees only, calculate the
      Federal, State, local and Social Security Tax liability by
      multiplying the dollar amount on Line 1 by .3363.  Round
      the result to the nearest whole dollar amount and enter
      the result on the Federal Income Tax Line.

   b. For non-highly compensated employees only, calculate the
      State, local and Social Security Tax liability by
      multiplying the dollar amount on Line 1 by .05975.  Round
      the result to the nearest whole dollar amount and enter
      the result on the Federal Income Tax Line.

7. 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 will be deducted from gross earnings on paycheck
   stub labelled "SCH CERT."

Processing Information

8. Initials of Human Resources/Faculty Records preparer required.

9. Enter date prepared by Human Resources/Faculty Records.


TO BE COMPLETED BY PAYROLL DEPARTMENT

10.   Social Security Number of Staff or Faculty Member.

11.   Copy the dollar amount value of the scholarship from Line
1.

12.   Copy the dollar amount of the Scholarship Certificate
   (scholarship deduction) from line 2.

13.   Record the (Hash) total of the above dollar amounts copied
   from lines 1 and 2.

14.   Determine and enter the Employee Pay Period End Date
   (Format: MM/DD/YY)

15.   Determine the deduction Start Date.  (Format: MM/DD/YY)

16.   Determine the deduction End Date.  (Format: MM/DD/YY)

Processing Information

17.   Initials of Payroll Department processor required.

18.   Enter date processed by Payroll Department.

Distribution

Forward original (white copy) to Payroll Department.

Issue yellow copy to student.

Faculty Records retains and files pink copy.