Fringe Benefits

The expenses/reimbursements listed below are reported by Accounting Services to the Human Resources System (HRS) and appropriate federal, state, and FICA taxes will be withheld. These payments will also be included in gross income on employees’ W-2 forms.

Reporting Year

Fringe benefits are taxes and reported on the employee’s W-2 in the fringe benefit tax reporting year in which they are paid. The UW fringe benefit tax reporting year is from November 1st through October 31st of each year. For example, if a fringe benefit is paid in November 2019 or December 2019 the UW will tax and report these on the W-2 for 2020


In general, employee reimbursements for meals are not taxable and not reportable to the IRS. The only exception is for meals not associated with an overnight stay and not related to recruiting of students or job applicants.

Moving Expenses

Effective January 1, 2018 through December 31, 2025:

  • The new law (Tax Reform) suspends the exclusion of qualified moving expense reimbursements from gross income and wages for calendar years 2018 through 2025.
  • All moving expenses are considered taxable to the employee and included as taxable income and proper taxes withheld (Federal, State, FICA) based on the W-4 on file with Payroll for individual employees.
  • If actual move happened prior to January 1, 2018:
    • Tax Compliance Office will apply tax law in effect prior to January 1, 2018
  • If actual move happened after December 31, 2017:
    • Tax Compliance Office will apply new tax law effective January 1, 2018

If you have any questions please contact the Tax Compliance Office at or (608) 262-0582.

Educational Assistance

Reimbursements to employees for job-related training are not taxable or reportable. To qualify as job-related, the training must be:

  • required by the employer or required as a condition to the retention of an established position or status (e.g., continuing professional education courses), or
  • taken to maintain or improve skills required in the employee’s present position.

In addition, the training cannot be required to meet the minimum educational requirements for the employee’s position or qualify the employee for a new trade or business. All other training is considered career-related.

Graduate and Undergraduate career-related tuition reimbursements are not taxable or reportable for tax reporting purposes unless they exceed $5,250 in a calendar year. When the payments exceed $5,250 the excess over $5,250 is the only part reported by Accounting Services to the Human Resources System (HRS) and appropriate federal, state, and FICA taxes to will be withheld. Only the excess over $5,250 will be included in gross income on employees’ W-2 forms.

Accountable Plan Payments Made After 90 Day Rule

For details on payments through the UW 320 Expense Reimbursement Policy.

Employee Tax Reportable Fringe Monthly and Calendar Year End Reporting Process

Employee tax reportable fringes that flow through Accounting Services are (1) taxable non-overnight meals, (2) taxable moving, (2) non-taxable moving, (3) taxable educational expense reimbursements, and (4) taxable accountable plan (Non-Accountable Plan – NONA) payments (effective 01/01/2017).

Employee tax reportable fringes and non-accountable plan payments that flow through Accounting Services are sent through to the Service Center monthly for tax deductions from the employee’s paycheck and to be added to the employee’s W-2 boxes 1, 3, 5, and 16 since they are treated the same as regular wages for tax purposes. Note that for educational expense reimbursements there is a $5,250 exclusion before it is taxable. Non-taxable moving amounts are sent to the Service Center for inclusion on their W-2 for informational purposes, but no taxes are withheld.

The two fringes that flow through Accounting Services that get broken out separately on the W-2 are non-taxable moving (box 12, code P) and taxable moving (box 14).

W-2 Box 12. Codes P – Non-taxable moving expense reimbursements paid directly to employee (not included in Boxes 1, 3, 5, or 16).

W-2 Box 14. Other – This box is used for additional information regarding taxable compensation or reimbursements. MOVE – This is the taxable portion of your moving expense reimbursements. Boxes 1, 3, 5 and 16 have been increased by this amount.

Foundation reimbursements and non-accountable plan payments are treated the same way as other fringes processed through Accounting Services. Foundation reimbursements are coded FDTN while non-accountable plan payments are coded NONA.



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21 North Park Street
5th Floor, Room 5352
Madison, WI 53715

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Jose A. Carus, Jr.
Tax Compliance Manager

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Phone: 608-262-0582