Intercollegiate Athletics Policy Manual
Section 17.00 - Ticket and Ticket Operations
Appendix - Staff Tickets Tax Policy
The University of Texas at Austin
Department of Intercollegiate Athletics
Athletics Ticket Office
Complimentary Tickets / Taxable Compensation
F. A. Q. sheet
1. What is taxable compensation?
The IRS considers complimentary tickets as a fringe benefit and an addition to the actual money paid to each employee. This means that any complimentary ticket for selected events issued to any University employee will be reported as taxable compensation and the University will withhold the same percentage as each employee requested on their PO-8 (income tax withholding) form. If you would like to change your PO-8 form, please see the personnel administrator for your department.
2. What athletic tickets does this affect?
Under current policy for Athletics Events, the University reports any complimentary ticket issued to you for Football and Men’s Basketball games as taxable compensation.
3. If I pick up tickets can I turn them back in to the Ticket Office or Business Office for credit if I do not use them?
No, once someone receives a ticket it will be reported to the Payroll Office as taxable compensation. IRS and accounting procedures also do not allow us to change the number of complimentary tickets you received.
4. I occasionally give some of my complimentary tickets to another staff member. Will I get taxed on the tickets another staff member uses?
No, but please remember the Athletic Department staff policy which states that complimentary tickets are for your use and the use of your family, relatives and friends. In addition, you must fill out a form, or you will be “taxed.”
If you do give some of your complimentary tickets for another staff member (or to another employee of the University of Texas system) you have thirty (30) days to turn in a “TAXABLE COMPLIMENTARY TICKET” form to the University Payroll Office. This form is available at the Ticket Office.
For example, staff member Jenny is eligible for two (2) complimentary tickets and staff member Roger is eligible for two complimentary tickets. Jenny gives Roger one of her two tickets for the Florida Atlantic game because Roger has another family member visiting. The Ticket Office will report Jenny receiving two complimentary tickets and Roger receiving two complimentary tickets.
Jenny must fill out the form listing the one Florida Atlantic Football Game Ticket with a value of $60.00 issued to Roger. Jenny must also get Roger to sign Jenny’s form and also list his social security number. Jenny has thirty (30) days from the date of the event to get the form in the hands of University Payroll. The Payroll Office will then alter the compensation received by Jenny and Roger. Jenny will be shown as receiving one comp ticket and Roger will be shown as receiving three comp tickets.
5. I occasionally give some of my complimentary tickets to an individual for development or University purposes. Can I be taxed on tickets used for Athletic Department purposes?
No, but please remember the Athletic Department staff policy which states that complimentary tickets are for your use and the use of your family, relatives and friends. You also must fill out a form, or you will be “taxed.”
If you do use some of your complimentary tickets for official purposes you have thirty (30) days to turn in a “TAXABLE COMPLIMENTARY TICKET” form to the University Payroll Office. This form is available at the Ticket Office.
The form is filled out the same way as in item number 4, but you do not need to get the signature and social security number of the ticket recipient. All you need to list is the ticket, value, name of that person and the University purpose that the ticket was used for.
6. What are we talking about in real numbers?
The number of complimentary tickets reported to the University Payroll Office depends on the duties and requirements placed upon you at each event.
Let us take the 2008 football season as an example. Let us say that staff member Roger is eligible to receive two (2) complimentary tickets and has no duty or requirement at football. Each 2008 home football season ticket has a value of $385 and the Oklahoma game has a value of $95. The combined value of 2 season tickets and 2 OU tickets is $960.00. If Roger is in the 28% tax bracket, he would have paid approximately $269.00 in taxes on the value of the complimentary football tickets received.
7. When will I see this in my take home pay?
This amount will be reflected in a pay check which is processed a minimum of thirty (30) days after each game. The exact amount of withholding depends on the W-4 form you have filed with the University. The University allows you thirty (30) days to turn in a “TAXABLE COMPLIMENTARY TICKET FORM.” After that time, it will process the amount reported as taxable compensation.
8. If tickets are considered as taxable compensation, can I be reimbursed by the person I am giving my tickets to for the amount of the tax?
No, you still cannot sell your complimentary tickets for any value. They are given to you by the department for your use and are not available for re-sale for any amount.
last updated: February 11, 2009