Employee Complimentary Tickets Fringe Benefit Reporting
Employee complimentary tickets fringe benefit reporting was implemented on July 1, 2022.
- Guidelines
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Mandatory reporting is required through the following process and form in order to comply with tax law regarding complimentary tickets provided to university employees.
Requirements
- Complimentary tickets are considered taxable income to employees, per the IRS, under
IRC §61, unless a statutory exclusion exists. If you believe a taxable exclusion exist
please reach out to Tax & Revenue Services for a review of the facts and circumstances
and for approval of an exclusion. Unless you receive an exclusion all complimentary
tickets must be reported following these guidelines.
- “Employees” includes currently employed full and part time employees, student employees,
and graduate assistants identified in the Human Resources/Payroll system.
- When arranging to provide a taxable fringe benefit of a complimentary ticket to an
employee, a department should complete a Taxable Fringe Benefit Reporting Form.
- Any employee receiving complimentary tickets will need to sign the Taxable Fringe Benefit Reporting Form to accept the complimentary tickets provided to them. Employees will be notified
that receipt of tickets provided by the institution and valued over $100 in one calendar
year constitutes a taxable fringe benefit.
- The department is responsible for reporting the fair market value of the ticket provided.
- The fair market value for complimentary tickets which are purchased from another department
should be determined using the department invoice.
- The department will submit to the Office of Tax & Revenue Services the Taxable Fringe Benefit Reporting Form for each employee participating in the distribution. The department will attach the
related invoice documenting the fair market value or a statement of fair market value
for the complimentary tickets.
- The tracking year for the reporting is November through October. Taxable Fringe Reporting
Forms are completed throughout the year and forwarded to the Office of Tax & Revenue
Services. All forms must be turned in by fifth working day in November for reporting
and payroll purposes.
- Records of complimentary ticket distribution will be accumulated in the Office of
Tax and Revenue throughout the tracking year.
- When any employee receives distributions of complimentary tickets with a combined value over the university established de minimis value ($100) in any tracking year, the employee’s December pay stub will reflect the value above the de minimis value. Income tax related to the value of the complimentary tickets received will be withheld from the employee’s December paycheck. The tax implication is estimated to be 25% of the value of the items received.
Optional Reporting
- There is an option available to all departments to compensate the employee for the
tax withheld. This is not mandatory. The department can provide payment of the estimated
tax liability through an extra compensation form.
- If a department distributes complimentary tickets valued over $100 to an individual employee in a tracking year, the department can choose to offset the income tax consequence for the employee by submitting a Request for Extra Compensation for Taxable Fringe Benefit Form by the fifth working day in November. This Request for Extra Compensation for Taxable Fringe form would authorize a payment equal to 25% of the value of apparel over $100. The payment would be processed in December when the taxes are withheld.
- Complimentary tickets are considered taxable income to employees, per the IRS, under
IRC §61, unless a statutory exclusion exists. If you believe a taxable exclusion exist
please reach out to Tax & Revenue Services for a review of the facts and circumstances
and for approval of an exclusion. Unless you receive an exclusion all complimentary
tickets must be reported following these guidelines.