Business Services Policy - Clothing Purchases
This policy defines guidelines for purchasing clothing using university funds. Additional review is required for clothing given to employees to ensure compliance with the Internal Revenue Service (IRS) tax code and other applicable policies and statutes.
|Executive Sponsors||Vice Chancellor for Administration & Finance|
|Policy Contact||Assistant Controller|
- Clothing – items worn to cover the body.
- Employee – an individual who performs paid work for the university.
Clothing purchases with a cost of $75 or greater made with university funds require a Clothing Purchase Approval form. Clothing that will be used as a prize, award, or gift also need to comply with the UWL Prizes, Awards, and Gifts Policy. Clothing that is purchased for a university employee will be classified as follows by Business Services based on information provided by the department:
- Taxable Employee Benefit
- Clothing purchased with university funds and given to an employee that is suitable for everyday use outside of employment and has a cost of $75 or greater per item.
- Non-Taxable Benefit
- Clothing purchased with university funds and given to an employee that meets all of the following conditions:
- Wearing the specific item of clothing is a condition of employment.
- The clothing is not suitable for everyday wear.
- The clothing is not worn for general use, but for a specific job-related duty.
- De Minimis Benefit
- Clothing purchased and given to an employee infrequently and valued at less than $75 is considered a non-taxable de minimis benefit to the employee. The de minimis rule applies per item.
Departments making clothing purchases using university funds must complete the Clothing Purchase Approval form if the purchase cost is $75 or greater per item and provide the information necessary to ensure compliance with this policy. The form will be reviewed by Business Services and must be approved before the purchase can be made.
- The clothing is specifically required as a condition of employment.
- The clothing cannot be worn or adapted to general usage as ordinary clothing.