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Benefits (HR-300)

HR-301 Perquisites


A perquisite is an item of real income that is not paid as cash salary or wages.  Perquisites can be classified as either taxable or non-taxable. 


To be considered non-taxable, a perquisite must be a requirement or condition of employment, for the convenience of the University, and on the premises of the University.  An example of a non-taxable perquisite is an employee required to occupy University – owned housing as a condition of employment, for the convenience of the University, and located on the premises of the University.  Non-taxable perquisites that are provided in payment for services regularly rendered to the University will be considered salary for purposes of calculating benefits under the University of Missouri Retirement, Disability, and Death Benefit Plan.


Taxable perquisites are defined as any non-cash item of real income provided to an employee that is not classified as a non-taxable perquisite.  Examples of taxable perquisites are tickets to athletic, theatrical, or other admission-related events, or gifts.  In accordance with Business Policy Manual Section 217, except where specifically provided by University policy, neither University assets nor its processes should be used to pay for non-University expenses. 


All perquisites, taxable or non-taxable, are valued at fair market value.  In the case of athletic, theatrical or other admission-related events, the fair market value is deemed as the face value for admission.  UM Faculty and Staff Benefits Office, in conjunction with UM Business Services, will ascertain the fair market value of non-taxable perquisites. Additional Pay Form (UMUW Form UM 271) must be submitted to the HR/Payroll Office.  Earnings code PRR should be indicated for non-taxable perquisites and earnings code PRQ for taxable perquisites. Information about specific earnings codes can be viewed at https://uminfopoint.umsystem.edu/sites/controller/public/Central%20Payroll/Processing/Copy%20of%20EarnCodes-descriptions-20050801.pdf.  

Date Created: 9/26/97

Last Updated: 1/21/06