Taxable Fringe Benefits and Exclusions
Cars – simply put, any use that is not related to university business is taxable. Use for business purposes, conversely, is excludable, thus it is important to correctly maintain the car’s mileage log for vehicles assigned to individuals.
Meal Plans – where there is not a specific exclusion in the law, the provision of meal plans to an employee is deemed personal, and therefore taxable. One particular exclusion may apply however: if an employee is required to be on call at the employer’s convenience, a provided meal is excludable – Hall Directors and Resident Assistants generally fall under this category.
Housing – as a fringe benefit, housing provided for the convenience of the employer, as a condition of employment,
ANDon business premises is excludable.
Clothing – this benefit is particularly relevant to athletic staff. Any clothing provided to an employee that is NOT a uniform cannot be excluded and is taxable.
Graduate Student Waivers – tuition waivers for graduate students can be excluded as taxable income when the student is doing research or teaching. Also, the provision of graduate level education up to $5,250/calendar year to any employee as a tuition benefit is excludable from gross income.
The university is currently developing a policy to address taxable fringe benefits. Please stay tuned for more information on this initiative, and contact Ms. Melissa Johnson, our tax advisor, at 865-974-2493 or by email at email@example.com should you have any questions or need additional information.
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