Taxable Fringe Benefits

You are provided taxable and non-taxable fringe benefits in addition to your salary (and bonuses). Taxable fringe benefits are included in your gross income in the year received unless expressly excluded or deferred until a later year under the Internal Revenue Code. Cash fringe benefits are normally taxable, such as a technology allowance to offset the business use of a wireless device or home internet connection. The University has identified some taxable non-cash fringe benefits as being subject to employment tax and reporting, according to Internal Revenue Service (IRS) regulations.

Some examples of non-cash taxable benefits include:

• Club membership (value of University-paid club memberships and related expenditures that do not serve an official UT business purpose).
• Tickets (value of season tickets/passes to events for which there is no official UT business purpose or an exclusion does not apply).
• Spousal travel/meals (value of UT-paid travel and meals for your spouse when his or her attendance serves no documented official UT business purpose, i.e., is primarily social in nature), with an exception regarding spousal travel on UT-owned or chartered planes if 50 percent or more of the regular seating capacity is filled by employees flying for documented business purposes.
• Gift cards

If you receive any of these benefits, consult your chief business officer to ensure they are reported properly. The UT Payroll Office must be notified to facilitate proper withholding and reporting of payroll taxes. Payroll can help determine whether your benefits are taxable and advise what documentation should be maintained for benefits excluded from taxable income.

For more details on fringe benefits reporting, see Policy FI0900.