Louisiana Administrative Code
Title 4 - ADMINISTRATION
Part V - Policy and Procedure Memoranda
Chapter 41 - Taxable Compensation-PPM Number 73
Section V-4115 - Evaluation Tests for Exclusion from Taxable Compensation
Universal Citation: LA Admin Code V-4115
Current through Register Vol. 50, No. 9, September 20, 2024
A. The general rules of evaluation to be used in determining if and when a fringe benefit is exempt from inclusion as taxable compensation are as follows.
1. Meals
a. The value of meals furnished to an
employee by and on behalf of the state will be excludable from the employee's
gross compensation if two tests are met:
i.
the meals are furnished on the premises of the employer; and
ii. the meals are furnished for the
convenience of the employer.
b. Meals furnished by the state without
charge will be considered furnished for the convenience of the employer if the
meals are furnished for substantial noncompensatory business reasons of the
state rather than as a means of providing additional compensation to the
employee.
c. On the premises will
be interpreted to mean either:
i. quarters
that constitute an integral part of the business property; or
ii. premises on which the entity carries on
some of its business activities.
2. Lodging
a. The value of lodging furnished to an
employee by or on behalf of the state will be excluded from the employee's
gross income, if three tests are met:
i. the
lodging is furnished on the business premises of the employer;
ii. the lodging is furnished for the
convenience of the employer; and
iii. the employee is required to accept such
lodging as a condition of his employment. The third requirement means that the
employee must be required to accept the lodging on the business premises in
order to enable him to properly perform the duties of his employment, which in
turn will mean that the lodging is furnished because the employee is required
to be available for duty at all times or because the employee could not perform
the services required of him unless he was furnished such lodging.
b. On the business premises will
be interpreted to mean either:
i. living
quarters that constitute an integral part of the business property;
or
ii. premises on which the entity
carries on some of its business activities.
c. Ownership or control by the state of the
premises furnished is not a test criteria.
d. Lodging includes utilities and associated
related items such as lawn maintenance, maid service, etc. The value of
utilities, etc., furnished to the employee for the convenience of the state is
excludable, unless the employee contracts directly with the utility, etc., for
the service.
3.
Transportation
a. The value of personal use of
a state vehicle must be included as taxable compensation.
b. The value for use of a state vehicle for
commuting purposes shall be a flat $1.50 per one way commute trip ($3 per day
for round trip) if the following conditions are met:
i. the vehicle is owned or leased by the
state and is provided for and used for state business;
ii. for bona fide noncompensatory business
reasons the state requires the employee to commute to and from work in the
vehicle;
iii. the department,
agency, etc., has a written policy which disallows personal use of the vehicle
by the employee, or any individual whose use would be taxable to the employee,
except for de minimus personal use such as a lunch stop between business
meetings;
iv. neither the employee
nor any individual whose use would be taxable to the employee uses the vehicle
for any personal purpose other than commuting and de minimus personal use;
and
v. the employee using the
vehicle is not a control employee as defined in Temporary Regulation Section 1.
61-2T(f)(5),(6).
c. For
valuation of personal use of a vehicle for those employees who use a state
vehicle to commute, but do not meet the conditions enumerated above, and those
employees who have personal use of other modes of transportation, alternative
valuation methods are available in the Internal Revenue Code and
Regulations.
d. the alternative
valuation methods, including the cents-per-mile rule or lease valuation method,
may be utilized only upon prior approval of the Commissioner of
Administration.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:78 and Executive Order Number 85-52.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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