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
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. (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 18.
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.
The Internal Revenue Service (IRS) regulations require the value of employer-provided apparel/clothing and allowances or expenses be considered taxable fringe benefits unless an exclusion applies. To be
excludable, the clothing/apparel
Must be required to be worn by the employer,
Not be suitable for general use as ordinary clothing.
The IRS emphasizes it is not enough that the clothing is distinctive (e.g., a company logo on a shirt) — it must be specifically required by the employer. Further, it is not enough that the clothing is not worn away from work — it must not be suitable for taking the place of regular clothing. For instance, a police uniform would not be suitable for general wear and is excludable. Protective clothing required for work (such as safety shoes or boots, safety glasses, hard hats, and work gloves) is also excludable.
Examples of excludable employer-provided clothing/apparel include:
Examples of non-excludable employer-provided clothing/apparel include:
Fringe benefits are generally valued at fair market value for tax purposes.
Additional information, if necessary.
The reporting of employer-provided apparel/clothing is based upon receipt of apparel/clothing by the employee. Once taxable apparel/clothing has been reported to the University Payroll Office, the value of the clothing will appear as a line item, "Clothing – Non-Cash", under the Earnings Section on the employee's pay advice for the pay period in which the apparel item is reported to payroll (or shortly thereafter). The value will be included in taxable wages and subject to applicable income and employment taxes.