The University of Minnesota functions as the common paymaster for University of Minnesota Physicians, referred to as UMPhysicians. They are considered related corporations for purposes of a common paymaster arrangement of wage and tax reporting and reaching social security limits, pursuant to Section 125 of Public Law 98-12. This allows you to have only one FICA limit for your combined wages from both organizations.

University of Minnesota Physicians and the University of Minnesota follow the same pay cycles, but separate pay statements are issued for wages paid through UMPhysicians.

Pay Statement

As a concurrent employee of both the University and University of Minnesota Physicians, you receive two pay statements each period. Each statement is identified separately, the first reporting University compensation and deductions, and the second reporting UMPhysicians compensation and UMPhysicians deductions. All pay statements are online.

W-4

As a concurrent employee of both the University of Minnesota and University of Minnesota Physicians, your income tax withholding is based on separate forms W-4 submitted for each organization.

You can view or change your W-4 allowances for both UMPhysicians and/or the University online.

W-2

You will receive a single Form W-2 at the end of each calendar year, which will consolidate total earnings from the University and UMPhysicians. Since the University acts as common paymaster for University of Minnesota Physicians, the wages reported to the IRS on a single Form W-2 for concurrently employed individuals fall under Title 26, Section 31.3121(s)-1 of the Code of Federal Regulations.

Deductions

University of Minnesota Physicians offers both before-tax and personal deductions to their “concurrent” employees.

The before-tax deductions include the following.

• University of Minnesota (UMP) Savings Plan - 401k Plan not subject to Federal and State income tax withholding
• University of Minnesota Physicians Medical Reimbursement - Not subject to Social Security and Medicare withholding, or Federal, and State income tax withholding
• University of Minnesota Physicians Dependent Reimbursement - Not subject to Social Security and Medicare withholding, or Federal, and State income tax withholding (Note: If you are already participating in the University's dependent care benefit program you cannot participate in this portion of UMP's Plan)

Personal deductions offered to UMPhysicians employees include:

• UMPhysicians Long Term Care Coverage
• UMPhysicians Disability

For more information about the University of Minnesota Physicians Retirement Savings and all other UMPhysicians benefits and deductions, you should contact the University of Minnesota Physicians HR Service Center at 612-884-0808.