Uniform allowance - compensation management - Manu Melwin Joy

Uniform Allowance Compensation Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Uniform Allowance

• Uniforms that employees must

wear as a condition of

employment may be provided

tax-free as a working condition

fringe benefit so long as they

are not adaptable to street

wear or cannot be worn as

ordinary clothing.

Uniform Allowance• Your employee does not receive a

taxable benefit if either of the following conditions applies:– You supply your employee with

a distinctive uniform he or she has to wear while carrying out the employment duties.

– You provide your employee with special clothing (including safety footwear and safety glasses) designed to protect him or her from hazards associated with the employment.

Uniform Allowance• Employers may provide

employees with tax-free allowances to purchase uniforms if the apparel qualifies under the Internal Revenue Code (IRC) as a uniform and employees substantiate their expenses under the accountable plan rules of the IRC.