Employee Discount Policy
To provide policy relating to the taxability of employee discounts offered by the university. This policy is in accordance with IRS Publication 15-b on Employee Discounts.
This policy is applicable to discounts provided to the employees of Georgia College & State University by GCSU.
Georgia College & State University may offer employee discounts. If the employee discounts exceed 20 percent of the price of services offered to the general public, the discount is generally a taxable benefit to the employee.
Discounts up to 20 percent are generally not a taxable benefit. Additionally, discounts greater than 20 percent are not taxable if admittance or participation in the event does not make the organization incur any additional costs (including foregone revenues). Accordingly, discounts greater than 20 percent can be made only on an "as available" basis and cannot preempt a patron willing to pay full price.
For this exclusion, treat the following individuals as employees for purpose of applying the employee discount policy:
A current employee
A former employee who retired or left on disability
A widow or widower of an individual who died while an employee
A widow or widower of en employee who retired or left on disability
The value of an employee discount for discounted services can generally be excluded from wages up to 20% of the price charged non-employee customers for the service.
This policy does not apply to employee benefits administered by Human Resources.
Procedure for Reporting
If a taxable benefit is provided to a GCSU employee, send a memo to the Budget Office at CBX 021 requesting that the employee discount be considered Extra Compensation to the employee(s) involved. The employee will be subject to Federal, State, FICA and FICA-Medicare taxes on the amount of the employee discount and the department will be charged the employer match for FICA and FICA-Medicare.
Georgia College& State University
Employee Discount Report
Beginning/Ending Period _________________
Please list all employees receiving special discounts (i.e. free or reduced rates):
Name Reason Total Paid Total Discount
Authorized Signature Date