Personal Taxibility of University Related Activities

There are a few University transactions or activities involving ASU employees that result in additional compensation to the employee beyond the routine wage payment process. When these situations occur, ASU is required as withholding agent to deduct applicable taxes and to report and submit these taxes to the proper taxing authorities. Such transactions are handled through the ASU Payroll system, where the amount of the additional compensation is added to the normal pay and taxed appropriately.

ASU has established policies and procedures on four such activities, although there may be other situations or circumstances that result in payments being made that accrue more than an incidental personal benefit to an employee and that should be handled as taxable transactions.

Departments making third party payments on behalf of employees should be sensitive to possible payroll tax implications and contact the tax unit of Financial Services for assistance in making appropriate taxability determinations.