![]() The University ID number must be provided in place of Form W-9 for employees receiving cash equivalents. (Reference IRS Publication 15-B and Internal Revenue Code 274 (e)(3)(B).)įor the University to comply with tax reporting regulations, it is required that a completed Form W-9 (Request for Taxpayer Identification Number and Certification) must be submitted to the Accounts Payable Department for any cash equivalent provided by the University to non-employees. The IRS specifically defines gift certificates, gift cards, and any financial instruments redeemable for cash as cash equivalents and states that the value of these items is considered taxable income to the recipient regardless of dollar value. Payments made by third parties to individuals by cash or check for services, prizes, awards, gifts, or giveaways are not permitted and will not be reimbursed by the University. ![]() These types of payments must only be made directly to the individual from the University (via Accounts Payable or Payroll by check or direct deposit) to ensure compliance with Internal Revenue Service requirements. The amount of the payment will be subject to tax withholding and included on Form W-2 for employees or reported on Form 1099-MISC if the recipient is not an employee of the University. Payments to individuals for services, appreciation, recognition, prizes, and awards are considered taxable income to the recipient. Departments should coordinate the payment of such expenses in advance with the Foundation. *Alternative funding sources, such as the USI Foundation, may be available for certain expenses not allowed from University funds. Office parties (birthday, retirement, etc.) Meals or entertainment expenses of elected officials or government employees who are not guests at a University-wide event Hospitality related to fundraising where the revenue is deposited into the USI Foundation* Meetings with representatives from multiple departments if the cost per person is $50 or moreįormal employee training, recognition, and celebrations are conducted away from the place where the employees’ work is normally performed if the cost per person is $50 or moreĮxamples of activities that are not allowable and will not be paid or reimbursed by the University include: ![]() Meals are provided to the spouse of an employee when the spouse is representing the University and his or her attendance is required or expectedĮxamples of activities that are allowable, but taxable include:įood to encourage or recognize effort or achievement of employees other than University-wide events to honor employees Meetings with representatives from multiple departments if the cost per person is less than $50įormal employee training, recognition, and celebrations are conducted away from the place where the employees’ work is normally performed if the cost per person is less than $50 Meetings or events with members of the community or other non-employees to conduct official University business or represent USI Meals when employees are required to work through a normal meal hour without an opportunity to have the meal at an alternate time Official business of the Board of TrusteesĮvents with the primary purpose of student recruitment, recognition, or attendanceĮxtended Services courses, where the cost of the course includes a factor for hospitality (Reference IRS Publication 15-B and IRS Publication 463.)Įxamples of activities that are allowable without tax consequences include: However, food provided to employees is generally considered taxable income as defined by the Internal Revenue Service unless certain conditions are met. University funds may be used to purchase food per the University Hospitality Policy. Refer to Travel Policy or Section B.25 of the University Handbook. The following guidelines do not apply to candidate meals or meals associated with travel. General Guidelines for the Purchase of Food from University Funds Click HERE for the BuyUSI Transaction Entry Guide
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