Salary checks normally payable during a vacation period may be obtained in advance of the vacation if proper notice is provided as defined by the campus in conjunction with the payroll office. Various types of payroll deductions and withholdings may occur during the pay year. The payroll office shall be responsible for interpretations and applications of required deductions. Federal and State statute require the payment of certain taxes and these shall occur each pay period as appropriate. USNH is required by federal law to add the value of waived tuition to the employee's paycheck for federal taxation purposes if the employee, spouse, or dependent child is enrolled in a graduate program and is considered by the enrolling institution to be a matriculating graduate student.
Amounts used for room, board, or other living expenses are subject to income tax.
Non-degree candidates receive no income tax exemption. Payments made to non-resident aliens are reportable to IRS by USNH via Form 10425 and generally taxes must be withheld when the payment is made. The IRS requires reporting of these payments on the employee's Form W2 and to withhold employment taxes. IRS regulations will determine if an award is exempt from taxes. Non-cash fringe benefits provided to employees are taxable income and must be reported to IRS on the employee's Form W2.