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Tax, Compliance and Controls | FAQs

Tax Reporting & Compliance (TR&C) FAQs

  1. General Information
  2. Tax Documents
  3. Information for Employees 
  4. Information for Employees - Residing and working outside of CA
  5. Scholarships or Fellowships
  6. Sales Tax & Use Tax
  7. Vendor Payment Reporting & Withholding

1. General Information

  • What is UC Davis’s tax status and federal tax identification number?
  • UC Davis is a tax exempt 501(c)(3) organization and was formed by Article IX, Section 9 of the Constitution of the State of California.  

    The federal taxpayer identification numbers (TIN) assigned by the Internal Revenue Service is 94-6036494.
  • What is UC Davis’s California tax identification number?
  • UC Davis’s state taxpayer ID assigned by the state is 935-0501-4.
  • What is UC Davis’s sellers permit number?
  • UC Davis’s sellers permit number is SR-Y-JHF-29-047481.
  • If I am processing a document that will impact the TR&C accounts, is it helpful if I include the project code associated with my department program/ employee?
  • Please do not include project codes when impacting the TR&C accounts.

2. Tax Documents

  • Where is my Form W-2?
  • Form W-2 reports your earnings (wages/salary/bonus) from UC Davis.  All Form W-2 are issued by UC Path.  If you opted for electronically delivery,  you’ll receive an email  from UC Path when it is available, usually in mid to late January.  Download it from your UC Path account at https://ucpath.universityofcalifornia.edu. For questions, contact UC Path at 855-982-7284.
  • I am a former employee. I can’t login to the UC Path portal to obtain my UC Path Form W-2. What can I do?
  • Contact UC Path at 855-982-7284 to update your personal email and get access to the former employee portal.
  • What is the difference between the W-4 and the W-2?

  • The W-4 is filled out by the employee to indicate the employee’s identifying information, marital status, dependents and withholding allowances. The W-2 is filled out by the employer as an end-of-year reporting document that has the employee’s wages, tips and other forms of compensation, tax withholdings and the amount of Social Security and Medicare taxes paid as well as retirement contributions.

    The W-2 is filed with the Social Security Administration and a copy is given to the employee. The W-4 is not filed with any tax agency.

  • I need a copy of my 2019 or any Form W-2 prior to UC Path conversion (before October 2019). Where can I request for one?
  • Please complete a Form W-2 request.  You can submit the completed form to the Central Payroll office via email at centralpayroll@ucdavis.edu
  • Where is my  Form 1042-S?
  • The Form 1042-S reports payments such as fellowship payments, tax treaty benefits, etc.  If you opted for electronic delivery, it will be available in mid-February to early March through Glacier.
    Otherwise, it will be mailed  to the current address they have on file in the UC Path portal. UC Path issues the form for wages, while TCC handles fellowships.
  • How can I obtain my Form 1042-S from previous tax year(s)?
  • For forms issued before October 2019 and fellowship payments, contact afs-trcmail@ucdavis.edu.
  • Why can’t I use Glacier Tax Prep (GTP)?
  • GTP is a tax program for international scholars to file their federal tax return.  Your current tax residency status MUST be nonresident alien for U.S. tax purposes.  If your status is a resident alien, you won’t be able to use GTP .  Please refer to your Tax Summary Report for your tax residency status.  SISS provides the GTP access code in mid-February to early March.
  • Can I get the access code to GTP?
  • SISS office issues the access code.  They will send the access code in mid-February or early March via email with an email address of sisstax@ucdavis.edu.
  • Where is my Form 1098-T? I have questions about my Form 1098-T?
  • Please visit Student Accounting’s webpage regarding Form 1098-T here.  For questions, contact Student Accounting via Contact An Expert.  For the “My question is about” field, select “Student Accounting.”  For the “My question’s topic is” field, select “1098T Tax Form.”
  • How can I obtain my Form 1099-MISC?
  • Please email afs-trcmail@ucdavis.edu and indicate the tax year to request for your Form 1099-MISC.

3. Information for Employees - General 

 
  • I need help with filing my federal and/or state tax returns. Can TCC help with filing tax returns?
  • No. TCC staff are not certified tax preparer/professional tax accountant.  Therefore, TCC cannot provide formal tax advice.  Please see below for resources.

    SISS: General Tax Information
              Tax Filing Resources

    IRS:   Choosing a Tax Professional​​​​​
  • How can I update my tax withholding?
  • To update tax withholding, login to your UC Path employee record at https://ucpath.universityofcalifornia.edu.  UC Path > Employee Actions > Income and Taxes
  •  I didn’t update my tax withholding in time and more income tax was withheld than I wanted. Can I get a refund of the extra withholding?
  • No.  Taxes withheld from paychecks are remitted to the tax authority on your behalf at the time of withholding.  However, you can adjust future withholding.  If you believe over withholding occurred due to UC Path error, then please submit a case to the UCPath Center through the self-service UC Path portal.  UCPath colleagues will review your record and reply. 
  • I believe that the tax withholding on my paycheck is not correct. How do I request a review of the withholding?
  • Please submit a case to the UC Path Center through the self-service UC Path portal.  UCPath colleagues will review your record and reply. 
  • Why are prizes and awards given to employees taxed?
  • The IRS has provided very clear guidance that prizes and awards are considered supplemental wages subject to income tax withholding, OASDI, and Medicare.  Reference can be found in IRS publication 15, Supplemental Wages.  In addition, specific UC and campus guidelines are available here
  • I am an International student or scholar and I have questions about my tax liability in the United States.
  • International student or scholars are required to complete a Glacier individual record. For more information on what this is and who it applies to, please visit our Glacier Home Page (NEED TO LINK).

4. Information for Employees - Residing and working outside of CA

  • Is there a specific amount of time the employee needs to be out of CA to no longer be considered a California Resident for wage reporting and withholding? 
  • California residency is determined by where you have the closest connection.  According to  California FTB Publication 1031,  if you leave California for an employment-related contract, you may qualify as a non-resident after 546 consecutive days. Review  FTB Publication 1031 for more details.
  • I am not a California resident but I am working in California. Why is the university withholding California income tax?
  • The State of California requires income tax withholding on all income earned within the state, regardless of residency. You can adjust your California withholding in UC Path: Employee Actions > Income and Taxes > CA State Withholding (DE-4). Out-of-state withholding forms are also available under Forms Library > Access Forms > Payroll > Out-of-State Income Tax Withholding Form.
  • I am in California because my spouse is on active military orders. I qualify to claim another state of residency because of the Military Spouses Residency Relief Act (MSRRA). How do I claim another state of residency?
  • If you are claiming exempt because you are eligible for the Military Spouses Residency Relief Act (MSRRA), then you may update your out of state withholding by logging into UC Path > Employee Actions > Income and Taxes > Out of State Withholding.  You will be required to complete the state specific withholding form for the state you claim tax residency. 
  • I am not a California resident and I am working outside of California. How do I avoid California withholding? Will the university withhold for the state I am working in?
  •  If you are a Non-California resident, your earnings are subject to reporting and withholding in the state the wages are earned.  Submit an Out-of-State Income Tax Withholding form EACH time your  work location changes. Do this through UC Path: Employee Actions > Income and Taxes > Out-of-State Withholding (W-4).  UC Path will review  and follow up as needed.
  •  I work both within California and out of California. How do I report and withhold taxes for these split locations?
  • If you are a Non-California resident, your earnings are subject to reporting and withholding in the state the wages are earned.  Submit an Out-of-State Income Tax Withholding form EACH time your  work location changes. Do this through UC Path: Employee Actions > Income and Taxes > Out-of-State Withholding (W-4).  UC Path will review  and follow up as needed.
  • I relocated outside of California but did not update my tax information for several months. How do I correct the tax reporting? 
  • Please submit an updated Out-of-State Withholding (W-4) form through UC Path: Employee Actions > Income and Taxes > Out-of-State Withholding (W-4). UC Path Center staff will correct your record and adjust state gross and withholding accordingly.
  • Will the UC Path Center refund the California tax withheld after I relocated?   
  • Yes, if applicable. UC Path Center will adjust your taxable wages and withholdings to reflect the correct state.  Refunds are only processed for the current year.
  • I am a US Citizen and I am working abroad. Is my university-pay subject to Federal or State income tax withholding?
  • Yes. US citizens and resident aliens are federally taxed on their worldwide income. The university is required to withhold Social Security tax as well as federal income tax,  according  to your Form W-4 on file. Please consult the IRS or a tax professional for specific guidance, as this is a complex area of tax law.
 

5. Scholarships or Fellowships

  • I want to award a scholarship to an active student.  How do I do this?
  • The appropriate process is to pay scholarships to active students is through Banner.  Please work with Student Accounting.  If a scholarship for an active student is submitted through Aggie Enterprise, then it will be returned to the department and delay the delivery of the funds.
  • When does the University report fellowships for scholarships?
  • The answer is dependent on the residency of the recipient.  

    United States citizens or resident aliens – The IRS does not require the university to report scholarship or fellowship grants for United States citizens or resident aliens; however, recipients of non-qualified scholarship and fellowship amounts should be advised that such amounts are taxable and that it may be advisable for the recipients to make estimated tax payments.

    Under IRC Section 117, the determination of whether a scholarship or fellowship grant must be reported to the IRS by the recipient is based on whether the grant (or a portion of the grant) is qualified or non-qualified and whether the recipient is a degree or a non-degree candidate.

    1. Degree Candidates

    > Qualified Amounts: The portion of a qualified scholarship or fellowship grant used for tuition and fees and related course requirement expenses is excludable from the recipient’s gross income if the recipient is a candidate for a degree for the purpose of studying or conducting research at an educational institution.
    > Nonqualified amounts: The portion of a scholarship or fellowship grant received for incidental expenses, e.g., room and board, travel, research, benefits, and expenses for equipment and other items not required for either enrollment or attendance in a course of instruction is not excludable from gross income. Therefore, such expenses are taxable.
    > Tax Reporting: Although neither the qualified nor the nonqualified portion of such grants is subject to income tax reporting or withholding, any amount used for nonqualified expenses must be reported by the recipient on his or her U.S. and California Income tax return.

    2. Non-Degree Candidates and Post-Doctoral Fellows

    No amount of a scholarship or fellowship grant received by a non-degree candidate (including a post-doctoral fellow) is considered qualified; therefore, the entire amount of the grant is taxable and must be reported by the recipient on his or her tax return.

    Nonresident Aliens: Under IRC Section 1441, the University as the withholding agent is required to report income and withhold Federal income tax from all income payments made to or on behalf of a nonresident alien, unless the payment is excluded under specific exemptions. The most common exemption is a tax treaty.  All Nonresident aliens are required to complete Glacier registration which will advise if there is an applicable tax treaty exclusion.  

    Absent exclusions, non-wage payments made to a nonresident alien that has been determined to be taxable are subject to income tax withholding at a 30 percent rate. However, a special 14 percent rate applies to any taxable scholarship or fellowship grants paid to F or J visa holders.
 

6. Sales Tax & Use Tax

  • Is the university exempt from California Sales tax?
  • No, the university is not exempt from California Sales Tax. 
  • Why does the campus have a different sales tax rate than surrounding cities?
  • The core campus is not within the Davis city limits and therefore isn’t subject to local district taxes.  The same is true for locations that are in outlying unincorporated areas of the county such as Primate Center.
  • What is the difference between sales and use tax?  Which is the university subject to?
  • California sales tax is imposed on retail sellers based on selling tangible personal property within California.  Use Tax is imposed on purchasers for the use, storage or consumption of tangible personal property within California.  Each piece of tangible property is only taxed once.  Typically when the university purchases tangible personal property, the retailer will collect sales tax.  However, when the university purchases an item and the seller does not charge sales tax, or charges a lesser rate than applicable, the university is responsible for self assessing and paying the tax due as use tax.     
  • If a purchase is delivered on the core campus but the purchasing department is located within the City of Davis, which is the correct sales tax rate?
  • Sales (or use) tax is applied based upon the first taxable use of the goods purchased.  If an item will be used at a location within the City of Davis but is delivered on core campus, the City of Davis sales tax rate is applied.  If the supplier applies the wrong tax rate, the purchasing department should contact the supplier and have the supplier correct the invoice.  There is a TCC PowerPoint available for viewing.
  • When does a vendor require a resale certificate?
  • A sale of tangible personal property made in California for resale is not taxable.  If UC Davis purchases an item for resale, a resale certificate should be issued to the supplier.  All resale certificates are issued by Tax Services.  When a department resells the item, it must then collect sales tax.  If UC Davis makes a sale to a re-seller, a timely, valid resale certificate should be obtained from the purchaser.  For guidelines on what information the resale certificate should include, when it is considered timely and how to verify the seller’s permit number on the certificate, see Publication 103 - Sales for Resale on the BOE website.
 

7. Vendor Payment Reporting & Withholding

  • When is a 1099-MISC form issued?
  • The university is required to issue annual 1099-MISC to payees receiving $600 or more for services rendered or non-employee awards/compensation.  Typically, The Form 1099s are not issued to corporations or nonprofit entities.  However, the IRS requires the university to report the following payments to corporations:

    > Medical and health care payments
    > Attorney fees and legal services
  • Why does the university report independent contractor payments to the EDD?
  • California State Senate Bill 542 became effective January 1, 2001 and requires the university to report twice a month the following information to the Employment Development Department (EDD) on independent contractors: 
    > First name, middle initial, and last name
    > Taxpayer Identification Number
    > Address 
    > Date payments  
    > Amount of payments
  • When is the university required to withhold California State income taxes?  Is there a mechanism to avoid California withholding?
  • When the university pays a supplier who is not registered with the California Secretary of State for work performed within California, the university must withhold seven percent of all payments that exceed $1,500 in a calendar year. 

    If a supplier is not registered with the Secretary of State, they can apply to the franchise tax board for reduced withholding (form 589) or a waiver from withholding (form 590) before performing work for the university.  If the FTB authorizes withholding other than seven percent, the applicable FTB form, 589 or 590, must be attached in Aggie Enterprise.
  • How do I determine if the payee is registered with the California Secretary of State and not subject to the 7% withholding?
  • The Franchise Tax Board (FTB) provides specific methods to determine if a company is registered:
    > The university may rely on a completed FTB form 590, Withholding Exemption Certificate, stating the corporation has a permanent place of business in California. 
    > The university may rely on the businesses listed by the California Secretary of State.  The company name listed on the Secretary of State website must match the invoice.
  • The supplier just provided me the completed form 590/589 and we already paid them. Can we give them a refund of the withholding?
  • No.  The Franchise Tax Board (FTB) requires the university to withhold seven percent (of the gross California source payment) if the FTB approval for reduced withholding is not received before the nonresident is paid for their services.