Procedure #: UWEC 331.A
Intent
This procedure lists the requirements and necessary steps to gain approval for and report employee taxable benefits to University Accounting. This procedure supports practice directive UWEC 331, Employee Taxable Benefits.
Scope
This procedure applies to all employees who receive the taxable benefits listed below.
Definitions
Fringe Benefit: an extra benefit supplementing an employee’s salary
Taxable Income: the amount of income that can be taxed
Procedures
- Administrative Meal Plans
- Entertainment and Recreational Memberships
- Housing, Meal Plans and Parking
- Relocation Stipends
- Additional Fringe Benefits
Administrative Meal Plans
Employees who use an administrative meal plan receive a meal plan card, funded by student meal plan dollars, which they are to use to purchase food and/or beverages to test the service and quality of the food being served on the University’s campus. Eligible employees include:
- Vice Chancellor of Finance & Administration
- Vice Chancellor of Enrollment Management
- Director of University Centers
- Director of Housing & Residence Life
- Head of Dining Experiences
- Additional employees at the discretion of the Vice Chancellor for Finance & Administration
All food and beverage purchased on an Administrative Meal Plan is considered a fringe benefit to the employee. The cost charged on the employee’s Administrative Meal Plan is considered taxable income and will be added to the employee's W-2 wages monthly by University Accounting.
All food and beverage purchased with University funds that is not covered by this procedure should be in compliance with Practice Directive UWEC 310, Food Purchasing and Procedure 310.A, Purchasing Food. Questions should be directed to the Controller & Director of University Accounting (actpay50@uwec.edu).
Expectations of use
- Eligible employees are to use the meal plan for service and quality testing only
- Eligible employees may designate one person per day in their absence for quality testing
- Eligible employees must provide documentation in the means of a survey for each food/beverage item purchased on the meal plan; the survey must be accessible by University Accounting
- Not for personal or departmental use
- Improper use of the Administrative Meal Plan may result in the revocation of use
StepAction1.Eligible employees may request an Administrative Meal Plan by emailing Blugold Card Services (blugoldcard@uwec.edu)2.Use your Blugold Card to pay for the food and/or beverage for which you are testing service and quality3.Complete the Administrative Meal Plan Feedback Survey each time you make a purchase.4.Blugold Card Services will send a report to University Accounting at the beginning of each month with the previous month's activity. University Accounting will compare the submitted surveys to the purchases each month.5.University Accounting will add amounts spent on Administrative Meal Plan cards to employee W-2 wages during monthly tax reporting and this will be reflected on future paychecks.
Entertainment and Recreational Memberships
Employees who receive an entertainment or recreational membership by the University Foundation, receive this benefit as a fringe benefit. This includes golf, athletic, social, country club and similar memberships. Memberships must be preapproved by the employees Dean or Director, Human Resources, University Accounting and the UW-Eau Claire Foundation.
All club dues, membership fees, food, beverage, service charges, greens fees, tickets and any additional charged purchases are considered a fringe benefit to the employee. The cost charged and paid on behalf of the employee is considered taxable income and will be reported by the Foundation and added to the employee's W-2 wages monthly by University Accounting.
StepAction1.Employee, their supervisor and their Dean or Director have a conversation about the benefit2.The department supervisor contacts the UW-Eau Claire Foundation for guidance and approval3.The department supervisor contacts Human Resources (humanresources@uwec.edu) for guidance and approval4.The department supervisor contacts University Accounting (univacct@uwec.edu) for guidance and approval5.The employee works with the UW-Eau Claire Foundation to have the expense paid directly6.The UW-Eau Claire Foundation will report the expense to University Accounting monthly7.University Accounting will add the amounts to employee W-2 wages during monthly tax reporting and this will be reflected on future paychecks.
Housing, Meal Plans, and Parking
Housing, meal plans, and/or parking provided at the expense of a University department are not a working condition nor a benefit to the University, but rather a fringe benefit to the employee. Eligible employees include:
- Athletic Coaches: for the purpose of providing housing to new coaches
- Graduate Students: for the purpose of supplementing their pay while an employee of the University and completing their Graduate studies
Any and all provided housing, meal plan, and parking are considered fringe benefits to the employee. The following amounts will be added to the employee’s W-2 wages monthly by University Accounting:
- Housing: the lessor of the actual cost charged to the department or the fair market value of the housing provided
- Meal Plans: the amount added to the employee’s meal plan account, whether used in full or not
- Parking: the cost of the provided parking
StepAction1.The employee's department chair or director discusses needs with Housing, Blugold Card Services and/or Parking.
2.The departmental supervisor completes and submits a Housing Benefit Form eform (located in the ASK - Administrative Support + Knowledge Center department in eforms).3.The form will route to applicable areas as well as the employee to acknowledge the tax implications.4.University Accounting will add the amounts to employee W-2 wages during monthly tax reporting and this will be reflected on future paychecks.
5.University Accounting will re-start the eform at the given end date so the parties involved can verify or make changes/updates to the amounts and/or dates
Relocation Stipends
Relocation stipends may be provided for the reimbursement of relocation expenses and related temporary lodging. Eligibility is at the discretion of the hiring department and may be available to new employees or current employees assigned to new locations by transfer or promotion.
The amount provided is considered taxable income, and tax is calculated and paid during the payment process.
StepAction1.Amount of the relocation stipend is determined as part of contract negotiations2.The department supervisor or their delegate submit relocation stipend information through Travel Expense Report (TER) reimbursement.3.The relocation stipend is paid with taxes taken out at disbursement once all approvals in the TER reimbursement process are completed.
4.University Accounting will verify the relocation stipend and tax during monthly W-2 tax reporting.
Additional Fringe Benefits
Any additional fringe benefit not included in this procedure that is paid in part or in whole by the University or University Foundation on behalf of the employee may be taxable. Contact Human Resources (humanresources@uwec.edu) and University Accounting (univacct@uwec.edu) for guidance and approval.
Resources
Practice Directive UWEC 331, Employee Taxable Benefits
Practice Directive UWEC 310, Food Purchasing
Procedure 310.A, Purchasing Food
Administrative Meal Plan Feedback Survey
Travel Expense Report (TER) Reimbursement webpage
Procedure Administration
Version NumberV1.0Approval AuthorityVice Chancellor for Finance & AdministrationApproval DateJuly 1, 2023Next Review DateJuly 1, 2024DivisionFinance & AdministrationDepartmentUniversity AccountingContactController & Director of University Accounting | actpay50@uwec.edu
Revision History
VersionRevision DateDescription of ChangeAuthor(s)1.007/01/23Initial issuanceJackie Kriesel