Apparel FAQ
- What are examples of apparel that would meet the working condition fringe benefit exclusion?
Examples of apparel that would meet the working condition fringe benefit exclusion include, but are not limited to police uniforms, steel-toes boots, work gloves, hard hats, and safety glasses.
- For outreach purposes we want our department employee to wear Michigan State University or department apparel when attending meetings/education events/etc. Is that taxable?
Yes, this is taxable, unless it meets the de minimis definition in the policy. Although the clothing is required to be worn as a condition of employment, the clothing can be worn for everyday wear and therefore is not excluded.
- Our department has a closet of jackets, raincoats, boots, etc. to be used by anyone in the department for research/maintenance/etc. purposes. Is this taxable?
No, apparel kept by the department for use by multiple people and is retained in the department is not taxable to employees.
- Our department has purchased a large quantity of t-shirts for an event. Employees and volunteers will be wearing the t-shirts. Is this taxable?
No, this is considered de minimis as the value of the shirts is low dollar and it is given infrequently.
- The project I am working on has a budget for clothes to be worn in the field while conducting research. Is this taxable?
It depends, if the clothing is for safety reasons and is required to be worn then it is not taxable. If it’s for clothing that would otherwise be worn (jeans, coat, hat, sunglasses) then it would be taxable.
- Our department provides an allowance for up to $100 a year for employee clothing (MSU logo, scrubs, etc.). Is this taxable?
If you are giving the allowance in cash or gift cards then it is taxable. If you are reimbursing the employee up to $100 when they provide receipts then it could be considered non-taxable if the de minimis exception is met (i.e. there are no other noncash gifts/awards for the calendar year).
- I think the apparel we provide to our employees meets the working condition fringe exclusion, but I’m not sure. What should we do?
Contact the Tax Services office, taxreporting@ctlr.msu.edu and we can help walk through the fact pattern to see if the exclusion is met.
- My department maintains a catalog/online store where employees can select clothing items and it is direct billed to the department. Is this taxable?
Yes, this is taxable unless either of the exclusions is met.
- Our department wants employees readily identifiable while working in offices and buildings on campus for security purposes. Can we provide them shirts?
Yes, but it is taxable unless it meets one of the exclusions provided in the policy.
