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Taxable Fringe Benefits

Please note that this is not an exhaustive list and there may be additional items that fall under "Taxable Fringe Benefits."

Complimentary Football, Basketball, and other tickets given to employees- face amount of tickets may be taxable to the employee.

When you award employees with cash (or gift certificates, or similar items easily exchanged for cash) you must report the value of such gifts as extra salary or wages, regardless of the amount involved.

Prizes in the form or goods or services: If you award prizes or bonuses in the form of goods or services, you must report the fair market value of the goods or services in the employee's income.

You can provide up to $50,000 of group-term life insurance coverage without reporting he employer's cost in the employee's income

Qualified moving expenses are:

Travel (one trip, including lodging but not meals) to the new residence (IRC Section 217(b)(1)(B)) The travel cost of only a single trip of the employee and members of his/her household is allowed, but they needn't travel together or at the same time. (IRS Treasury Regulation 1.217-2(b)(4)).

Lodging expenses for the day the employee arrives in the new area, and the cost of lodging in the area of the old home (within one day after employee couldn't live in the old home because the furniture was moved), can also be excluded from income. Temporary living expenses in the new area must be included in income and transportation of household goods and effects (IRC Section 217(b)(1)(A)).

The deductible expenses of moving household goods and personal effects include the costs of packing, crating and transporting, storing and insuring (for any 30-day period after the move), connecting and disconnecting utilities, and shipping the car and household pets. (IRS Treasury Regulation 1.217-2(b)(3)).
See IRS Pub. 521 for details.

Amounts received by an employee as payment for, or reimbursement of, moving expenses which are attributable to employment must be included in gross income as compensation for services, except where deductible as qualified moving expenses. (IRC Section 132(a)(6)). See IRS Pub. 521 for details.

The value of benefits supplied to a Domestic Partner of an employee are treated as taxable benefits to the employee.

Employees can exclude from their income up to $5,250 of qualified employer-provided ducational assistance if certain conditions are satisfied. See IRS Pub. 970 for details.

Taxable tuition waivers will be processed on employees' November/April and December/May paychecks. Employees with taxable tuition waivers will receive an email in early November/April notifying them that the taxable waivers will be added to their taxable gross income.

The Taxable Graduate Waiver on the employee's pay statement will be denoted in the Earnings Section by the earning code 'Tuition' (TUI).

The taxable tuition waiver amount will be subject to social security tax, and federal and state income tax withholding. Employees will see a decrease in their take home pay due to the taxable tuition waiver.

For additional information, review Frequently Asked Questions.

For additional information please refer to the Graduate Assistantship Handbook, page 12.

Business expense reimbursement submitted to University after 60 calendar days of the date that the business expense was paid or incurred by the employee becomes taxable to the employee.

If you provide a car (or other highway motor vehicle) to your employees, the personal use of that vehicle may be taxable as a noncash fringe benefit. See IRS Publication 525 for how to determine the value of that benefit.

2017-07-11T09:34:47.825-05:00 2017
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