Ohio Administrative Code › Title 3341 - Bowling Green State University › Chapter 3341-6 - Compliance with Occupational Safety and Health Standards › Section 3341-6-04 - Athletic/bowl game travel and entertainment related expenses

Current
			 through all regulations passed and filed through July 1,
			 2024
(A)
								Policy statement and purpose
It is the policy of Bowling Green state
				university to reimburse employees required to travel as representatives of the
				university to bowl game or athletic event activities who incur business and
				entertainment related expenses as per the policy outlined below.
(B)
								
			 Policy
The university is required to determine
				whether there is a taxable benefit (i.e., income) attributable to any persons
				traveling to or attending an athletic event, specifically a bowl game, when the
				university has paid for that person's travel, room, meals, tickets,
				etc.
The general rule is that any expenses
				incurred for a recognized business purpose are excludable from an employee's
				taxable income. Conversely, amounts expended on behalf of an employee that are
				not directly connected or attributable to a recognized business purpose must be
				included in the employee's taxable income and reported to the IRS via that
				employee's W-2.
Amounts expended on behalf of an
				employee's spouse, dependent, or guest are considered to be expended on behalf
				of the employee and are subject to the same requirement. Each section below
				explains what is involved in determining the taxability of the
				benefit.
(1)
									Recognized business purpose
Employees attending an athletic event
				or bowl game for a recognized business purpose include all employees who are
				performing an integral part of their job function during the course of the
				trip. Generally, this would include athletic department coaches and support
				staff related to the team participation. It would also include Development
				personnel who are attending to cultivate current and potential donors and
				hosting university guests and other dignitaries at special events conducted at
				the site. It would also include employees from student affairs attending to
				organize and conduct special events related to the purpose of the
				trip.
These examples are provided to assist
				in clarifying the definition of "recognized business purpose." There may be
				others who have a recognized business purpose for attending. It is important
				for all employees to document their activities to substantiate the business
				purpose of their travel -particularly when a spouse has a business purpose for
				the trip. In the event of uncertainty, contact the business office or the
				office of the vice president for finance and administration prior to incurring
				any expenses or entering travel status.
It is assumed that any non-employee
				invited to attend the event at the university's expense has been invited due to
				a specific business purpose; however, each individual's business purpose will
				need to be documented by the department/division head who has invited the
				guest. Please note: Per IRS regulations, any invited guests who bring dependent
				children, spouses or other guests who have no business purpose, will receive a
				form 1099-MISC for any taxable benefit exceeding six hundred
				dollars.
The IRS recognizes that an employee's
				spouse may have a business purpose for attending a special event such as a bowl
				game. For example, certain special events may be held where coaches' spouses
				are expected to appear. Additionally, the university may hold alumni or
				fundraising events at which a spouse is expected to participate in hosting.
				Note: dependent children are generally not considered acceptable participants
				in determining a recognized business purpose.
Documentation will be required for each
				individual receiving university provided travel, hotel, meals, tickets, etc.
				demonstrating the business purpose for the benefit received.
(2)
									
			 Airfare
The airfare of all individuals
				attending the athletic event or bowl game for a recognized business purpose is
				excludable from taxable income (as it has been deemed a working condition
				fringe benefit). The fair market value of airfare for those not attending for a
				business purpose is includable in compensation.
Determination of fair market value: If
				travel was on a commercial flight, the fair market value would be the price of
				a ticket. If travel was on a charter flight, the regulations provide a
				valuation formula to determine the value of the flight. The calculation
				includes a terminal charge plus a cents per mile charge. The business office
				will obtain the current cents per mile rates and also the distance for the
				flight to calculate the amount of income to be recognized.
Exception to taxable income
				recognition: The IRS regulations contain a special rule for excluding the
				taxable income of airfare: When fifty per cent or more of the regular passenger
				seating capacity of an aircraft is occupied by individuals whose travel purpose
				is primarily for the employer's business purpose, those employees who do not
				have a business purpose may fly and no additional income is recognized or added
				to their W-2 for the value of the airfare.
Additionally, retired employees,
				disabled employees, the surviving spouse of an employee, the current spouse,
				and dependent children of an employee may fly on such flights without the
				employee recognizing any additional taxable income even though those
				individuals do not have a business purpose for the trip.
Non-employees: Independent contractors,
				members of the board of trustees, external vendors, and any other guests must
				be treated as non-employees. If a traveling non-employee is engaged in a
				recognized business purpose on behalf of the university, no portion of the
				expenses incurred by the university on their behalf would be attributable to
				him/her as taxable income and thus no 1099 would be issued. Conversely, if a
				non-employee is traveling without a recognized business purpose, and provided
				travel, lodging, meals or tickets by the university where the total value
				exceeds 5(c)(2)(a) to (c)(2)(f) of this rule six hundred dollars, then that individual
				will be issued a form 1099-MISC reporting the taxable income per IRS
				regulations.
(3)
									Ground transportation
Ground transportation charges for
				employees with a recognized business purpose is excludable from their income.
				If additional charges are incurred for spouses, dependents, or others who do
				not have a business purpose, such amounts are includable in the employee's
				compensation. If there is no additional cost for the transportation (e.g., cab
				fare is the same for one or two people), then no additional compensation is
				attributed to the employee.
(4)
									Hotel
Lodging costs for those employees
				making the trip for a recognized business purpose is excludable from their
				compensation. If employees are accompanied by others who do not have a business
				purpose for the trip, only the incremental costs associated with the additional
				guests would be includable in the employee's taxable compensation.
Example: If the cost of a hotel room is
				the same for a single or double room and the employee's spouse accompanies
				him/her for a non-business purpose, there would be no additional compensation
				to the employee. However, if there is an additional cost for the double room,
				then additional cost will be included as taxable compensation to the
				employee.
(5)
									Event and game tickets
The cost of tickets for those attending
				the game or for those attending an event for a business purpose are excludable
				from income. The cost of tickets for spouses, dependents, or others who do not
				have a business purpose for attending the game or event would be includable in
				the employee's taxable compensation.
(6)
									Per diem or meal
			 reimbursement
Per diems and meal reimbursements for
				employees traveling with a recognized business purpose are excludable from
				compensation. Any reimbursement for accompanying guests would be included in
				the employee's income unless the accompanying guest was engaged in a recognized
				business purpose.
Date: July 1, 2014