Imputed income may result in unpaid taxes
As the 2020 calendar year winds down, all employer and employee taxes need to be posted on 2020 earnings by Dec. 31. Taxable compensation includes more than just wages or salary – taxes on eligible imputed income must also be posted.
Imputed income is any benefit or service with a monetary value that are taxed the same as regular income. At the University of Colorado, this includes the Tuition Assistance Benefit, awards or gift cards, expense reimbursements submitted more than 90 days after the expense was made, pre-paid moving expenses for employees and some benefit costs for covered civil union and domestic partners.
Usually, payroll taxes for employers and employees are collected from each payroll. Occasionally, applicable taxes on imputed income are posted after an employee has left or is no longer receiving other compensation.
In these rare cases, the applicable taxes cannot be collected. At the end of each calendar year, the unpaid employee tax portion is redirected to the unit and posts according to position funding or suspense when position funding has expired.
Learn more about imputed income on the imputed income information page.