3.39 Employee Housing Policy
Piedmont University may provide housing for faculty or staff in the normal course of business. This policy outlines the guidelines for approval, documentation, fees, rents, waivers and applicable taxation of housing benefit received. It is separate from the policy for lodging as part of travel for official Piedmont University business.
Piedmont University may provide housing to employees under the following circumstances:
At the Convenience and Request of an Employee or Department - A Piedmont University Department or an employee may request university owned housing. In the event of such a request, either the institution or the employee is responsible for the charges associated with the rental.
Housing Authorization/Assignment – The President is authorized to approve housing for employees. All employees granted Piedmont University housing shall sign a lease/housing agreement.
Taxation of Housing Benefit for employees whose job functions do not require living on campus as a condition of employment – In the event the rental/lease payments do not match the fair market value of housing provided to the employee, the difference is taxable (in accordance with Internal Revenue Code (IRC) Section 119) and included in the employee’s gross income on Form W-2.
Exemption from Lodging Taxation – Under IRC Section 119, an employee who is living in Piedmont University housing free of charge would be excluded from imputed income if the following tests are met.
- It is provided for the convenience of the employer and as a condition of employment. To meet this requirement, the job description for the position must specify that living on campus is a condition of employment and:
- There must be a direct connection between the lodging furnished and the business interests of the employer. A written statement in the employment contract is not sufficient to meet this test.
- The employee must accept the lodging to properly perform the duties of employment, and he or she cannot have an option to accept cash in lieu of the lodging.
- The employer’s file must include documentation to defend the nontaxable treatment of the lodging and may contain:
- A description of the employee’s responsibilities;
- A description of the lodging being furnished;
- Reasons why the lodging is required for the employee to perform his or her duties;
- The employment contract; and,
- A listing of taxable or nontaxable utilities and services provided (such as phone, Internet, cleaning services, and landscaping services).
- It is located on the business premises (geographically integrated within a campus or on the premises where the employer conducts a significant portion of its business, such as a residence off-site from the main location but where significant organizational activities are conducted).
Procedure for Requesting Employee Housing Authorization/Assignment:
Housing Request Process:
A request for University housing may be made by the VP, Dean, or employee by completing the Housing Request Form below (also located on PilgrimNet under Business Office), obtaining appropriate approvals, and forwarding it to the President. All lodging assignments are at the discretion of the President.
If approved by the President, the Housing Request Form will be forwarded to the Business Office for determination of rental value and taxable events.
- Business Office will forward the completed Housing Request Form to the Office of Human Resources for preparation of the Lease Agreement, Pet Agreement, and processing of any taxable amounts.
- All lodging charges will be collected through payroll deduction or other agreed upon payment method.
- Should the employee leave employment, the employee’s lodging agreement will end and he/she shall be expected to move out. The employee will remain responsible for room charges and all associated fees until proper notification is provided to the Business Office that the property has been vacated.
- At the discretion of the President, the University has the right to end a housing agreement immediately for cause, violation of the University’s housing policy or by providing the employee with a 60-day written notice.
Detailed information regarding IRC Section 119 can be found at:
http://www.irs.gov/publications/p15b/ar02.html
PIEDMONT UNIVERSITY HOUSING REQUEST FORM
Fiscal Year:
HOUSING REQUEST:
This form must be completed and approved prior to making ANY OFFER of University housing. A new form must be completed each January to request lodging for the next fiscal year.
Date: __________
Check which months the request applies to:
JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY
University Department: Position:
Reason for request to live on campus:
__________________________________________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________________________________________
Pet: Yes No
COMPLETE ONCE HOUSING IS APPROVED:
Approved Property:
Property Rental Rate:
Employee Rental Payment:
Property Utility Cost:
Employee Utility Payment:
Taxable Benefit (if any):
Employee Pet deposit payment (if applicable):
$250 Amount Date
PIEDMONT UNIVERSITY HOUSING REQUEST AUTHORIZATION:
Requirement of the Job: Yes No
Considered taxable income: Yes No
President’s Approval Signature: Date:
Completed copies to be scanned to: Payroll, Facilities Management and Employee.
Original to be placed in Employee’s Personnel File in Human Resources.