Hoos Well Reward Taxation


Hoos Well is excited to see so much active participation in programming that improves the UVA community's physical, financial, and emotional wellbeing. 

As a reminder, taxes associated with rewards that you or your eligible spouse redeemed between April 1 and April 30, 2020, will be withheld from the UVA Health plan subscriber’s upcoming paycheck.

The Federal Insurance Contributions Act (FICA) – which is composed of two taxes, (Social Security and Medicare) will be deducted in the upcoming pay cycles listed below:

  • ACD Bi-weekly: June 12

  • ACD Monthly: July 1

  • MC Bi-weekly: June 19

You can locate your reward redemption in the Earnings section of your pay slip as Non-Cash Wellness Gift Taxable.

WHICH TAXES WILL BE WITHHELD?

The Federal Insurance Contributions Act (FICA) – which is composed of two taxes, (Social Security and Medicare) will be withheld from the UVA Health Plan subscriber’s paycheck. However, all redeemed rewards will be reported on employees’ 2020 W-2s as compensation and will be subject to federal and state withholdings. Therefore, the associated tax liability may impact the amount of taxes or refunds owed when your returns are filed.

The 2020 FICA tax rate is 7.65% meaning $7.65 will be deducted for each $100 redeemed.

Learn more about taxation of gift card rewards.