Summary: UNIVERSITY OF HOUSTON SYSTEM
SECTION: Human Resources NUMBER: 02.E.02
AREA: Miscellaneous Benefits
May 15, 1992; Revised April 15, 2005 Page 1 of 3
The guidelines concerning payment or reimbursement of specific types of expenses,
known herein as perquisites, and the tax treatment thereof, is set forth in this document.
This document does not address business expense reimbursements, which are covered in
SAM 03.A.02 Business Expenses.
All perquisites are treated as part of the compensation package of an individual. The
human resources department of each component university will serve as the repository
for perquisite records, and authorization for existing and new perquisites should follow
the authorization requirements for compensation changes. In addition, in accordance with
United States income tax laws and regulations, items which are subject to Federal Income
Tax should be treated by the employee as taxable income. The employer is responsible
for including the value of taxable benefits in the employee's Form W2 and the employee
is responsible for maintaining appropriate documentation to support the deductibility of