Clay Putnam, CGCS said: Jason A Pettus said: Thanks for the responses. I feel they should be provided but after checking the Ohio law the company is in the right to make them take it as a deduction from their pay, which I still find to be ridiculous.
I agree with you 100% Ron. Hopefully I can change their thought process on this matter.
Thanks again,
Jason Pettus
Jason,
I know it seems somewhat petty but most states, as I understand it, follow the guidance of the IRS. Anything of value provided by the employer to the employee is seen as compensation and thus taxable; I.e., vehicle, cell phone, uniform, insurance, etc. The IRS will stick their grubby hands up a shark's arse if they thought they could come out with a dollar. A lot of employers do not report these "perks" to the IRS, however, there are those that follow the letter of the code. Some employers get around the reporting requirement by making the employee pay for these perks. This sort of thing is common in the business world. Many businesses require the staff to pay for their uniforms entirely or in part. Some may purchase the first set of uniforms then require the employee to purchase any subsequent uniforms, etc., etc...
Correct me if I am wrong, but wouldn't a vehicle, cell phone, or uniform be a requirement to perform a job and not be taxable if it is provided by the company while performing said duties? Similar to us also providing a mower, screwdriver, computer, etc...to be used while working.
Insurance is different as it is pre-taxed and included on a W-2 at the end of the year and therefore reported to the IRS.
The only time I would see the IRS getting involved is if you are REQUIRED to purchase something to do your job (i.e. police officer's gun or uniforms). And even then that is considered a business expense on the employee's end and can be deducted from their personal taxes at the end of the year.
That being said, uniforms promote professionalism. They may be as simple as some nice collared shirts to full sets of shirts, pants, etc...provided by a uniform company. We supply 11 sets on a weekly service. Costs me about $4 per person per week. For myself and Assistants, we get 18 shirts and 1 jacket a year ordered through the pro shop.