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Account Codes to Identify Taxable Cash Allowances

The following request was initiated by OSU however similar activity has been identified at at least three OUS institutions.  This request may not immediately affect each institution but as position requirements and employment contracts become more 'diverse', compensation agreements that include items other than normal salary would likely fit into this 'Cash Allowance' category.

OSU has requested the ability to identify taxable cash allowances (classified & unclassified) within the accounting records using new account codes.

The accounts would be excluded from effort reporting for A-21 purposes.

Cash Allowances would include allowances paid to employees for using their personal assets to conduct university business as required by their position or their employment contract. The use of personal assets can include electronic communication devices (such as cell phones), internet service connections and vehicles (does not include travel reimbursement).

Cash allowances may also include other unique cash payments that may be specified by employment contracts but not subject to effort reporting.

These allowances are all tax subject. 

Existing account codes and definitions are insufficient to accurately address the need.

The proposal is to create two new account codes as follows:

  • 10251 Unclassified Cash Allowance-Taxable
  • 10451 Classified Cash Allowance-Taxable

Once implemented, employee class accounting defaults on the Cash Allowance earn code (FPV) would need to be updated with the new accounts at all institutions.

It is requested that a mid year implementation be approved. The intended effective date of implementation would be Jan 1, 2007.

Please contact Nick Miller at 737-3113 or Paul Bartlett 737-4361 by Wednesday December 13 if you have any questions or concerns with the above new account codes.

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Last Updated: 11/28/06