Employer-provided "non-cash" taxable compensation or fringe benefits, such as employer-provided vehicles, complementary tickets, and graduate level educational assistance, are subject to federal income, state income, social security, and Medicare tax rules. According to Internal Revenue Code Section 1.61-1, all compensation paid to, or on behalf of, an employee constitutes wages subject to income and employment tax withholding, unless specifically excluded by IRS code.

Following is a list of non-cash taxable compensation or benefits, and their descriptions, identified by the University of Minnesota as being subject to tax withholding and Form W-2 reporting as taxable income.

Car Leasing Benefit

Value of personal use of a University-provided vehicle.

Club Membership Benefit

Value of University-paid club memberships and related expenditures to the extent that such activities are not each sufficiently documented to be serving a bona-fide University business purpose.

Gift Certificate Benefit

Value of any cash-equivalent gift certificate awarded to an employee. Also, see the University policy on Employee Recognition Awards. Follow the instructions on the Gift Card/Certificate Reporting Form (Excel) to submit taxable amounts to Payroll Services.

Moving Expenses Taxable Benefit

Value of employer-paid moving expenses that are non-qualified (and subject to all withholding), whether paid to an employee or a third party. Examples: cost of meals while traveling, expenses of a house-hunting trip, and temporary living expenses.

Rent Benefit

Market value of University-provided housing or payment of housing costs where housing is determined to be a personal benefit.

Ticket/Passes Benefit

Value of season tickets or passes to events for which there is no documented University business purpose.

Spousal Travel Benefit

Value of University-paid travel for spouse of University official when spouse's attendance serves no documented official University business purpose.

Regents/Academic Tuition Benefit

Value of University-paid tuition for credits taken by employee in a graduate degree program, if total tuition benefit exceeds $5,250 in a calendar year.

Taxable Benefit/Compensation

Value of miscellaneous taxable benefits or compensation paid by departments on behalf of employees.