2014 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 IS THE PROFESSIONAL PRIVILEGE TAX?

 Accountants  Engineers  Chiropractors  Dentists  Physicians  Pharmacists  Psychologists  Optometrists  Veterinarians  Audiologists  Podiatrists  Speech Pathologists  Attorneys What Types of Professionals at UT Pay The Tax?

 $400/year How much is the Tax?

 UT may be able to pay the tax on the professional’s behalf! Good News!

 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 2 nd How does my Faculty or Staff Qualify?

 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 PART-TIME REQUIREMENTS

 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 IF THE PART-TIME REQUIREMENTS ARE MET

 Take Ownership of your departmental list.  Department should compile a list of all employees who are eligible.  Employee should forward the 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 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.  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 2 nd.  Remind faculty and staff to keep a COPY of the confirmation received What is my role as the Business Manager?

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