2008 Woodie Awards
Simpson's 10 highest paid see transition in appearance of benefits
Nicole Cleveringa and Emily Schettler/Copy Editor and Staff Writer
Issue date: 4/10/08 Section: News
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The IRS/Form 990 is a tax document which requires non-profit organizations to report the top five highest paid officers and non-officers of the organization, essentially the top 10 highest paid personnel at Simpson.
According to the Internal Revenue Service, the Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization.
The salaries of the 10 highest paid employees not only include compensation, but benefits and expenses as well. Benefits include retirement contributions and health insurance while expenses may include an expense allowances and tuition remission.
Tuition remission is given to those who have a child or spouse who is taking courses at Simpson or other private colleges with similar agreements. It's another incentive for those working for a private college.
Due to changes in the way the tax forms have been filled out this past year because of recommendations from an outside accounting firm, it is difficult to compare salaries to those in the past.
"The reason the accounting firm recommended the change is due to scheduled changes in how the IRS will want us to report the compensation in coming years," Adam Voigts, assistant vice president for business services/controller, said. "The accounting firm suggested we make those changes now."
Voigts went on to explain how the changes affect Simpson's tax reporting.
"This change is to report compensation in the 990 so that it ties to their compensation reported to the IRS on their W-2," Voigts said. "This is always going to be a lower amount because there are deductions that decrease the total compensation to what is reported on their W-2 for taxable income."
The main difference in the reporting is the change from reporting gross income as compared to taxable income.
While compensation has appeared to have decreased, benefits for employees have appeared to have skyrocketed, in some cases by over 100 percent.
"In the past, amounts reported for benefits included only the portion of retirement funds that were contributed by Simpson as the matching portion," Voigts said. "This year, in addition to the Simpson portion, the reported benefits include the amounts that employees chose to contribute out of their compensation. The employee portions of retirement fund contributions is an example of a deduction to get to taxable income."
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question?
posted 4/10/08 @ 12:55 PM CST
Did I miss where you actually say who the ten highest paid employees are? All I seem to see is where you say the President is the highest paid.
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