Page 9 - The Edge - Winter 2021

elbow-bump doesn’t cost anything,” Barragan said. She
recommended reaching out to community groups for
additional funds.

Public transportation passes or tokens are not taxable if
the value is less than $21 a month.

If you attend a conference where meals are provided, you
should eat there. You should not be reimbursed for meals
away from the conference, unless for dietary reasons.
Your K12 dream team for dining
Travel must be an accountable plan to be non-taxable. services and facilities management
Any reimbursement for meals or per diem for travel
under 50 miles or when there was no overnight stay is a
taxable benefit, Barragan said. Food kids love to eat Industry leading equipment
The largest team of chefs & dietitians Superior cleaning guidelines
Fun, innovative programs Focus on clean, safe and healthy facilities
“The Attorney General website is
your friend.” – Jill Barragan
For more information please contact:
Tyler Geopfert Chartwells Regional Sales Director
A bus driver could be allowed to take a school bus home, e. Tyler.Geopfert@compass-usa.com
particularly in a rural area where the driver lives farthest c. 480.500.5066
from the district and picks up students on the way to Nikki Crider SSC Regional Sales Director
school and drops them off on the way home. But the e. Nikki.Crider@sscserv.com
c. 480.861.6109
driver would not be allowed to transport other school
employees.

The cost of life insurance coverage under $50,000 is
exempt from being reported as wages. If the coverage
exceeds $50,000, the cost should be included in Social possible problem. “Go that route just to be safe,” she
Security and Medicare taxes and federal income tax said. “Be very cautious about doing that on regular basis
could be withheld, Barragan explained. for the same people.”

Regarding clothing, Lauzon said giving away $5 T-shirts Meals for food service employees during or immediately
to mark a school’s anniversary, for example, qualify as before or after a regular meal are not taxable.
a small cost exemption provided it’s a one-time event. Lauzon explained that membership in a gym is not a
“You couldn’t give away really nice jackets,” he said. taxable benefit if provided through a health insurance
plan and not by the school district.
Employer-provided clothing is generally treated as
taxable wages unless it meets certain qualifications, If you plan to give gift cards to an employee as an award
Lauzon said. It is not taxable if it is required or for services, Lauzon recommended having them donated
essential to be worn as a condition of employment, by the PTA or some other organization. “You should
such as protective boots, glasses or hard hats. Another have them present the award,” he said.
exemption is if the clothing is considered unsuitable
for every-day wear. “If it’s so horribly ugly,” Lauzon His advice to business officials: “When in doubt, include
said. He recommended having a policy stating that the it in the W2.”
clothing must not be worn when not at work.

Barragan said you can exclude the value of meals provided Michael Lauzon can be reached at: (928) 556-5271 or
on your premises if done for the district’s convenience michael.lauzon@heinfeldmeech.com
and there is a substantial business reason. If it’s a meal
for a staff meeting, check to see if the funding source Jill Barragan can be reached at: (623) 772-5000 at
permits such an expenditure. Barragan recommended jbarragan@avondale.k12.az.us
seeking funding from a community partner to avoid a

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