Taxing Staff Travel?

highspeed

Well-Known Member
Last week a memo was posted in our office that basically said, due to new IRS regs we will unfortunatly have to begin taxing your staff travel benifits. This tax will not apply to the following list of travelers: the employee, employees parents or dependants. It says we're to be taxed at the highest full fare unrestriced coach class ticket, plus state, plus FICA taxes. Bottom line, each ticket I give to someone else on my travel list will cost ME a bit over 100 bucks in taxes. The memo also said that Virgin had contacted other airlines in an attempt to discover how they would he handling the 'new' policy.
So has anyone else yet been told of these new taxes? Now, I don't have a huge problem with paying some taxes on a free ticket, but to charge me at the full fare Y ticket is bogus. A standyby, fly only if we got seats, best not be traveling when and where everyone else wants to go, ticket is not the same value of a full fare coach ticket.

Again, you guys yet to hear of this?
 

highspeed

Well-Known Member
Thanks for the link. I hadn't even thought about the issues with commuting to work. Doesn't look like Virgin will be covering the expenses though.
 
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