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.