Transcript 2014 Privilege Tax

2014 Professional Privilege Tax
WHAT IS THE PROFESSIONAL
PRIVILEGE TAX?
 The professional privilege tax is levied on the privilege
of having an active license to practice certain
professions, businesses or occupations in the State of
Tennessee.
What Types of Professionals at UT
Pay The Tax?
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Accountants
Engineers
Chiropractors
Dentists
Physicians
Pharmacists
Psychologists
Optometrists
Veterinarians
Audiologists
Podiatrists
Speech Pathologists
Attorneys
How much is the Tax?
 $400/year
Good News!
 UT may be able to pay the tax on the professional’s
behalf!
How does my Faculty or Staff
Qualify?
 Must be a full-time employee*
 *Part-time employees may submit documentation for
reimbursement after the fact if certain conditions are
met
 Hold a professional license directly related to their job
duties
 Apply online at the UT website that will be announced
in early April
 All entries must be completed by May 2nd
PART-TIME REQUIREMENTS
 The employee and the employee’s supervisor have to sign an
affidavit, in which both are stating that the employee is required
to have the license, for which the privilege tax is assessed, in
order to carry out their duties for the University
 On the affidavit, the employee and his or her supervisor asserts
that the employee does not have any other employment, private
practice, other non-UT business arrangement for which the
employee earns income using the professional license
 The payment is allowable for regular part time and post
retirement term employees if they are employed as of May 1 of
the current year and meet the stipulations in the affidavit
WHAT IF THE PART-TIME
REQUIREMENTS ARE MET
 The department must obtain the employee’s canceled
check or credit card receipt as proof that the privilege tax
was paid
 With the proof of payment and the signed affidavit, the
department can complete the Petty Cash T-4 for
reimbursement to the employee
 The departmental business manager must sign the T-4
 Upon completion, the T-4’s should be brought to Pam
Vaughn for approval, and she will send them to the
Bursar’s Office for processing
What is my role as the Business
Manager?
 Take Ownership of your departmental list.
 Department should compile a list of all employees who are eligible.
 Employee should forward the e-mail receipt they get, when they sign up on the
privilege tax website, to department manager and keep a copy for their records.
 Department manager marks them off the list.
 Compare the confirmation list from Knoxville to department list to find out who hasn’t
signed up and contact them.
 If you find an employee who was eligible and has the receipt, but they aren’t on the
Knoxville list, contact Stephanie Mitchell at Ext. 1481 to get corrected.
 Employees who signed up but were not eligible – department can contact them, and
let them know that they have to pay their own tax.
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Ensure all employees who qualify are on the departmental qualifier list
Remind faculty and staff they must complete and submit the requested information
online no later than May 2nd.
Remind faculty and staff to keep a COPY of the confirmation received
Questions