Compensation Reporting

Definitions

The following terms are used in this guideline.

Term

Definition

Tax indemnification and gross-up payment

The organization's payment or reimbursement of any tax obligations of a listed person

Guideline

Schedule J on the 990 titled Compensation Information requires that the Research Foundation (RF) provide information regarding compensation for Officers, Directors, Trustees, Key Employees and Highest Compensated Employees. Part I, questions 1a, 1b and 2 require reporting of "information regarding certain benefits (if any) provided to persons listed on Form 990, Part VII, section A, line 1A." Schedule J on the 990 titled Compensation Information requires that the Research Foundation (RF) provide information regarding compensation for Officers, Directors, Trustees, Key Employees and Highest Compensated Employees. Part I, questions 1a, 1b and 2 require reporting of “information regarding certain benefits (if any) provided to persons listed on Form 990, Part VII, section A, line 1A.”

The following addresses the category of benefits listed in questions 1a

Benefit Type

Allowable Status/Approval

First class or charter travel

Travelers are expected to use the lowest-priced available, appropriate, coach-class airfare. First class or other premium airfare may be used when no reasonable alternative is available.

Travel for companions

Not allowed

Tax indemnification and gross-up payments

Not allowed

Discretionary Spending Accounts

Not allowed.

All expenses must be paid for and reimbursed based on already established RF procedures or paid for by a corporate credit card and reconciled.

Housing Allowance or residence for personal use

In general, not provided by the RF for housing allowances or payment to employees for using their personal residences.

Housing allowances do not include providing for housing to an employee when it is part of their job (i.e. caretaker or camp counselor must live on the grounds available 24/7).

In rare instances, housing allowances may be allowed by the sponsor or the campus operations manager. Written evidence documenting sponsor approval must accompany the requests for payment in all cases when such costs are claimed.

Payments for business use of personal residence

Allowed in rare cases and could be provided with the campus operations manager or officer approval.

Other benefits such as health or social club initiation fees or dues

Allowed in rare cases and could be provided with the campus operations manager or officer approval.

Other benefits such as personal services (maid services, chauffeur, chef, etc.)

Allowed in rare cases and could be provided with the campus operations manager or officer approval.

Basis for Guideline

The RF is required to file Internal Revenue Service (IRS) form 990 Report of Organization Exempt from Income Tax. Form 990 is an annual information return used by tax-exempt organizations to provide the IRS with financial information such as gross income, receipts, and disbursements. It helps the IRS enforce the laws that govern nonprofits.

Taxable Benefits

The Research Foundation is responsible for reporting taxable benefits in accordance with IRS guidelines. Examples of taxable benefits include but are not limited to certain moving expenses, non-overnight meal payments, use of health or social clubs and personal use of a residence.

Refer to the following RF procedure and guideline documents for RF processes and guidelines associated with taxable benefits:

Responsibilities

This guideline identifies the following responsibilities as assigned to those cited below.

Role

Department/Unit

Contact Information

Comply with guideline

All RF staff, beneficiary of taxable benefit

n/a

Monitor for compliance

Operations manager or delegate

 

Reporting taxable benefits

Office that identifies the taxable benefit

 

Policy Executor

Finance Office

518-434-7050

Related Resources

Below are related resources to carry out the guideline or that provides other relevant information or instructions.

Resources

Miscellaneous Expense Policy

 

Moving Expense Reimbursement Policy

Moving Expense Reimbursement Guidelines

Moving Expenses: Requesting and Processing Reimbursements

Publication 521 (2008), Moving Expenses (IRS Publication 521)

Nonovernight Meal Payments

Nonovernight Meal Payments Policy

IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits

IRS Taxable Benefit Guide

Taxation and Reporting Compensation other than Salary and Wages

Taxation and Reporting Compensation other than Salary and Wages Guidelines

Educational Assistance Plan for Graduate Student Employees

IRS Form 1040, Schedule J Instructions

Change History

Date

Change History

October 18, 2013

Edit section on "Taxable Benefits" and refer reader to new procedure and guidelines with more comprehensive information on taxable benefits to RF employees or independent contractors

December 8, 2010

Added section on responsibilities for reporting 'Taxable Benefits' in accorance with IRS guidelines.

December 31, 2009

New Document

Effective Date: 31-December-2009
Responsible Party: Finance Office
Contact Information: 518-434-7050

 

 

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