Application of Working Condition Fringe Benefit Exclusion
If a unit desires to treat the value of an item of clothing or a uniform provided to an employee as non-taxable under the working condition fringe benefit exclusion, the unit must submit aDetermination of Taxability Formattaxcompliance@miamioh.edufor a tax determination( available upon request). The form must be submitted to the attention of the Tax and Compliance Analyst.
Questions regarding theDetermination of Taxability Formare to be directed to the Tax and Compliance Analyst attaxcompliance@miamioh.edu.
Tax and Compliance Analyst will determine taxability in accordance with this policy and applicable law when aDetermination of Taxability Formis received.
Tax and Compliance Analyst must document any decisions regarding taxability and provide a copy of the documentation to the unit submitting the request.
Tracking the Provision of Clothing and Uniforms
An item of clothing or uniformregardless of the dollar valueprovided by a unit to an employee that has not been determined by the Tax and Compliance Analyst to meet the working condition fringe benefit exclusionmust be tracked by the unit and reported to the Payroll Departmentvia Filelocker.
To track and report on such clothing and uniforms or non-cash items distributed to employees, the unit must timely complete theUniform Clothing and Non-Cash Items Reporting Form(available upon request). The form must be submitted to the Payroll Office no later than 10 days after the end of the month in which items were distributed. All distributions for the month of December must be reported no later than December 15. Any questions about theUniform Clothing and Non-Cash Items Reporting Formhave to be submitted atpayroll@miamioh.edu.
Taxable Clothing and Uniforms
Payroll Services will aggregate information reported on allUniform Clothing and Non-Cash Items Reporting Formsand determine when the cumulative value of all items reported on the form exceed the de Minimis threshold.
If the cumulative value of all items reported for an employee equals or exceeds $100 in a calendar year, the value of all items reported for that employee during the calendar year will be treated as taxable to the employee.
Payroll Services will enter the value of taxable items reported into the payroll system for inclusion in the employee's paycheck as taxable income.
Cash Allowances and Reimbursements
If a reimbursement for clothing or uniforms has been determined by the Tax and Compliance Analyst to meet the working condition fringe benefit exclusion, the reimbursement will be distributed to the employee through Accounts Payable.
All University units must report any cash allowances or taxable reimbursements for clothing or uniforms to Payroll Services using theUniform Clothing and Non-Cash Items Reporting Form(available upon request).
