Wichita State University
Office of Financial Operations and Business Technology


Congratulations on your award. As you may know, the honor includes a cash award. The Internal Revenue Service requires WSU to collect and report payroll taxes on awards.

There are three options open to you:  
1.
WSU can issue you a check for the award minus payroll taxes. **
Taxes required to be withheld from the gross award payment are:
  • Social Security Taxes at current calendar year rates.
  • Federal and State taxes will be computed on your total regular gross earnings plus the award payment. Therefore, it could place you in a higher tax bracket for the pay period.
  • The award payment is not subject to TSA mandatory retirement.
  • If you are eligible for KPERS retirement program, there will be an additional 4% withheld.
The payment will be included on your W-2 form at year end. A separate paycheck will not be created for the award payment. It will be included with your other gross to net pay and be distributed through regular means.
2.  WSU can deposit the award in an account in the Foundation for your professional development. As you incur professional expenses, you can submit the receipts to the Foundation and they will reimburse you up to the amount of the award. These funds are to be used by the end of the next Academic Year. You do not pay payroll taxes if you expend the award in this manner.
3.  WSU can transfer the award to your college or department for its use. You do not pay payroll taxes if you use the award in this manner and, per IRS regulations, the transfer is not a charitable contribution.

Please circle which option you choose and sign this form

I select option #      1         2         3

Congratulations once again on your honor.

Sincerely,

Lois Tatro
Director of Financial Operations and Business Technology
Wichita State University
 
 
 
                                                                                                                                                                                                           
Employee Signature
 
 
myWSU ID
Amount of Award
                                                                                                                                                                                                           
Department Name Date Department Head Approval

Department responsibilities & copy distribution:

Keep one copy of this letter for your files, give recipient of award one copy, return one copy to the Office of Academic Affairs, Box 13, and one copy to Gayla Shrank in Payroll, Box 38.

** If Option 1 (payment) is selected, an OHR 210 form for additional compensation with departmental signatures and identification of the funding source should be routed for appropriate signatures. If the funding source is the Foundation or the Board of Trustees, obtain a check from them and deposit the check to the appropriate WSU RU funding source of the payment. This will reimburse the fund with the outside payment.