You may be wondering why taxes are being taken out on some of the benefits you receive as a CU employee. That’s because some benefits are considered income for tax purposes. Confusing, right? Don’t worry; this page will explain imputed income and how it affects you.

What’s imputed income?

The IRS uses the term imputed income to describe the value of any benefit or service that is considered income when calculating your federal taxes.  There are several categories of imputed income that may appear on your pay stub:

  • Taxable Tuition Waiver (TTW): This benefit provides qualified employees and dependents with tuition assistance.  The tax impact varies depending on each individual’s circumstance. See more information under Tuition Benefit FAQs – Billing, Fees, Costs on CU’s Tuition Waiver Benefit Program.
  • Imputed Cash Award (ICA) or Imputed Cash Award for Student (ICS):  This is any noncash item you receive in your role as a CU employee, such as a gift card or iPad.
  • Weight Watchers (WW):  Participants in Be Colorado’s Weight Watchers at Work program pay a discounted corporate rate and receive a 50 percent taxable subsidy, which appears on participants’ pay stubs as imputed income.
  • Brussels + Muscles (BAM):  The cost of GeoPalz devices given to employees for the Brussels + Muscles program are taxed.
  • Business Expense (BEX): This is the taxable portion of any expense reimbursement.
  • Life Insurance (STNDRD):  Regulations require that life insurance in excess of $50,000 be subject to federal taxes.
  • Domestic Partner Medical and Dental Coverage (NQPlan Code):  The employee is taxed on the difference between what CU contributes for employee only coverage and employee + spouse or family coverage. The difference between these rates is reported as income and is taxed at the same rate as regular earnings.
  • Civil Union Partners:  The employee is taxed on the difference between what CU contributes for employee only coverage and employee + spouse or family coverage. The difference between these rates is reported as income and is taxed at the same rate as regular earnings.

Note: Any noncash, taxable fringe benefits may increase your taxable income. 

FAQs

Where can I see the “imputed income” on my paycheck?

Since imputed income is subject to both federal and FICA taxes, it is included on your pay stub, available in the CU Resources area of the employee portal under “Pay Advice.” Under the pay stubs “hours and earnings” heading there is a line with an exact description of the item that is being taxed.

Why am I getting taxed on my tuition benefit?

The IRS allows a maximum of $5,250 in tuition benefits for graduate courses per calendar year. Any amount you receive in excess of this annual amount is subject to taxes. See CU’s Tuition Waiver and Benefit Policy, details and FAQ.

Does imputed income affect my gross income?

No, it does not affect your gross pay; it only affects your gross taxable earnings.

Where can I find more information on imputed income?

The IRS provides a list of what benefits may be considered imputed income (taxable and nontaxable items).

 

Contact us

If you still have questions, give us a call at 303-860-4200, option 2, and we’ll be happy to help you.