Subject to all applicable exclusions
described below, the fair market value of any clothing or uniform provided by
the university to employees will be treated as taxable income to the employee
as required by federal law. The fair market value is the amount an employee
would have to pay to purchase the item in a retail store (e.g. suggested retail
price)
Any cash allowance provided to an
employee for clothing or uniforms must be treated as taxable income to the
employee. There are no exclusions for cash allowances.
If an item of clothing or a uniform is
treated as taxable and the university pays to or provides laundering for that
item, the value of laundering must also be treated as taxable income to the
employee.
(A)
Exclusions
(1)
Working condition fringe benefit exclusion
(a)
The value of an
item of clothing or a uniform provided by the university to an employee will be
treated as non-taxable and not included in the employee's taxable income if the
following requirements are met:
(i)
The employee is required to wear the clothing or
uniform as a condition of employment. To meet this requirement, the university
must specifically require the employee to wear the clothing or uniform as a
working condition; and
(ii)
The clothing or uniform must not be suitable for
everyday wear. To meet this requirement, the clothing or uniform must not be
suitable for taking the place of regular clothing.
(b)
Examples of
clothing and uniforms that meet the working condition fringe benefit exclusion
include, and are not limited to:
(i)
Uniforms worn by certain law enforcement officers,
certain delivery workers, certain health care professionals, and certain food
and building service workers; and
(ii)
Clothing that is
required to be worn for the employee's safety and protection (PPE) while on the
job, including, and not limited to, steel-toed boots, work gloves, hard hats,
and safety glasses.
(c)
Any reimbursement
to an employee for the employee's purchase of clothing or uniforms will be
treated as non-taxable and not included in the employee's taxable income
if:
(i)
The
expense meets the requirements of the working condition fringe benefit
exclusion; and
(ii)
The employee substantiates the expense with a detailed
record, including the equivalent of the original receipt(s) with the amount of
the expenditure, dates and location of the expenditure, and business purpose of
the expenditure and submits it for reimbursement, within sixty days of the
expenditure.
(d)
Any reimbursement amounts paid by the university to an
employee that are in excess of the substantiated expense must be returned to
the university within ninety days following the date of
reimbursement.
(B)
De minimis fringe
benefit exclusion
Clothing and uniforms
provided by the university to an employee will be treated as non-taxable and
not included in the employee's taxable income if the aggregate annual value of
the clothing and uniforms provided to the employee is less than one hundred
dollars per calendar year.
Notes
Ohio Admin. Code
3339-16-20
Effective:
2/12/2021
Promulgated Under:
111.15
Statutory
Authority: 3339.01
Rule
Amplifies: 3339.01
