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Travel Policy
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Topic starter
Do any institutions have policy/procedure that they can share regarding payment of travel expenses for family members of Employment Candidates? It's our understanding that these expenses are considered a Fringe Benefit by the IRS and are therefore taxable. We know that travel expenses once the candidate has accepted the position need to be treated differently as those are part of the relocation package. Thank in advance for your help!
Posted : 17/11/2021 5:35 am
Hi Rebecca,
We allow travel expenses for the prospective employees spouses only for candidate positions of faculty, department head, director, dean, assistant VP, Senior VP and above. Travel expenses may not exceed three days.
Hope this helps some.
Tina Wells
James Madison University
Posted : 17/11/2021 6:05 am
Hi Rebecca, We do not allow payments for family accompanying candidates on public/state funds.
Posted : 17/11/2021 11:20 am
Topic starter
Tina: how do you handle the tax implications for the spouse's travel?
Sally: we will not be able to allow it on State funds either but would like to allow it on non-state funds. Do you have any funds which it is allowed on?
Posted : 22/11/2021 5:42 am
Hi Rebecca- yes, we do allow on non-public funds. We do not handle any tax reporting for non-employees.
Posted : 22/11/2021 5:46 am
Hi Rebecca,
We allow for it on non-federal funds so long as the cost is ordinary and a necessary business expense. Following IRS Publication 463, Chapter 2, Associated Test. The candidate's spouse joins because it is impractical to entertain the prospect without the spouse. If we find that the cost does not have a business purpose we will report the cost of the spouse as taxable income and work with our Tax Reporting group.
Posted : 22/11/2021 6:37 am
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