The importance of contacting either the Tax Department or our Fringe Benefits compliance partner, the Human Resources Payroll Department, prior to providing any benefits cannot be overemphasized. Departments will be able to confidently inform their employees of the taxability of any benefits prior to the benefits being provided.
Fringe benefits are a form of payment, generally in exchange for the performance of services. All fringe benefits provided to employees are considered taxable, unless a specific exclusion applies. Due to the complexities involved with providing fringe benefits, we recommend that any departments providing fringe benefits to employees contact the Tax Department or Human Resources Payroll Department prior to providing any benefits. The below list is not intended to be comprehensive, it is only a sampling of common examples of fringe benefit categories provided by universities. The below list may be missing certain facts that must be present in order to provide for a tax-exempt fringe benefit.
Common Examples of Fringe Benefit Categories
1) Educational assistance:
a. Example - The UCF Tuition Waiver Program
2) No-additional-cost services:
a. Example - Tickets given to an athletics employee for a home game that did not sell out.
3) Qualified employee discounts:
a. Example - A twenty percent discount off the price of membership given to an employee of a gym.
4) Working condition fringes:
a. Example - A registration fee paid by UCF for an upcoming job-related conference.
5) De minimis fringes:
a. Example - An occasional holiday party.
6) Qualified moving expense reimbursements:
a. Example - Reimbursements paid to an employee that are qualified moving expenses.
Disclaimer: The University of Central Florida and its related organizations do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.