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Summary

A perquisite is an item of real income that is not paid as cash salary or wages. Perquisites can be classified as either taxable or non-taxable.

If any part of this policy is in conflict with Collected Rules and Regulations (CRR), the provisions of the CRR will govern.

HR Policy Provisions

1. Non-Taxable
   
   1. To be considered non-taxable, a perquisite must be a requirement or condition of employment, for the convenience of the ÐÓ°É´«Ã½, and on the premises of the ÐÓ°É´«Ã½.
      • An example of a non-taxable perquisite is an employee required to occupy ÐÓ°É´«Ã½ – owned housing as a condition of employment, for the convenience of the ÐÓ°É´«Ã½, and located on the premises of the ÐÓ°É´«Ã½.
   2. Treatment of non-taxable perquisites for the purposes of calculations under any ÐÓ°É´«Ã½ retirement plan will be determined in accordance with the terms of the applicable plan.
2. Taxable
   
   1. Taxable perquisites are defined as any non-cash item of real income provided to an employee that is not classified as a non-taxable perquisite.

      Examples of taxable perquisites are:

      1. tickets to athletic, theatrical, or other admission-related events,
      2. awards; or
      3. gifts.
   2. In accordance with ÐÓ°É´«Ã½ of Missouri ÐÓ°É´«Ã½ Policies, Incidental Expenses 26401, except where specifically provided by ÐÓ°É´«Ã½ policy, neither ÐÓ°É´«Ã½ assets nor its processes should be used to pay for non-ÐÓ°É´«Ã½ expenses.
3. Procedure Information
   
   1. All perquisites, taxable or non-taxable, are valued at fair market value.
      • In the case of athletic, theatrical or other admission-related events, the fair market value is deemed as the face value for admission.
   2. UM Faculty and Staff Benefits Office, in conjunction with UM Procurement/Supply Chain Operations, will ascertain the fair market value of non-taxable perquisites.
   3. An Additional Pay Form must be submitted to the HR/Payroll Office.
   4. Earnings code PRR should be indicated for non-taxable perquisites and earnings code PRQ for taxable perquisites.
      • Information about specific earnings codes can be found at Payroll-Campus Payroll Information.

See Also

Finance Policy 22307 - Awards, Gifts & Prizes

Date Created: 9/26/97
Updated: 01/01/2006; 01/21/2006; 02/01/2021