Ohio Admin. Code 3339-16-20

Current through all regulations passed and filed through December 2, 2024

Section 3339-16-20 - University provided clothing and uniforms

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.

Ohio Admin. Code 3339-16-20

Effective: 2/12/2021
Promulgated Under: 111.15
Statutory Authority: 3339.01
Rule Amplifies: 3339.01