Family

1
Family Spouse Travel

• Another reason to
• despise the tax code

2
Taxable Benefit

• The IRS requires employer-paid family travel to
  be included as W-2 taxable income unless
• The employee has reimbursed the employer
• The family member had a bona fide business
  purpose

3
Business Purpose

• There is not a bright-line test on what is or is
  not a business purpose
• University policy alone or department approval do
  not establish a business purpose
• A general rule of thumb is to ask if the
  University would send another employee on the
  trip if the family member did not accompany the
  employeeif so it is more likely to be a business
  purpose

4
Examples of Business Purposes

• The spouse of an employee traveling with students
  of opposite gender
• For example a male coach of female team without
  another female coach/chaperone
• A husband of a female employee traveling alone
  overnight
• A spouse performing significant responsibilities
• Contact Regulatory Accounting to consider facts
  and circumstances

5
Social Reasons

• The IRS and Courts do not usually consider social
  reasons to be a business purpose
• Dinners or receptions do not establish a business
  purpose even if spouse attendance is appropriate,
  expected, or customary

6
Study Abroad Long-Term Assignments

• Although there may not be a business purpose,
  University-paid family travel for study abroad
  assignments or other longer-term assignments is
  often less than the total allowed per diem amount
  if the assignment is for at least one semester.
  If so, there is not likely a reportable income
  tax issue.

7
Questions?

• For specific questions or more information,
  please contact Regulatory Accounting
• scott_j_howell_at_byu.edu
• 422-8098
• B-280 ASB