1-3: Uniforms and PPE

Effective: July 1, 1994
Revised: October 15, 2025
Approved by: Van Christensen
References: IRS Publication 5137

Purpose

This policy outlines the requirements and taxability for the payment of employee uniforms and PPE.

This policy does not apply to clothing given to employees that they are not required to wear while working. See 1-2: Incentive awards and bonuses and 1-8: Employee gifts.

This policy does not address the specific way to make a payment or the system to use. See policy 1-1: Employee payments general policies and procedures.

Definitions

Agency – Any agency, board, bureau, commission, office, department, or other administrative subunit of the executive branch of state government.

Personal Protection Equipment (PPE) – Equipment worn to minimize exposure to hazards. PPE can be included as part of a uniform, but is not considered a uniform by itself.

Uniform – Clothing that an organization requires its employees to wear while working.

Policy

A – Agencies must have their own policy

1 – If an agency pays for their employees’ uniforms, they must have their own policy.

2 – Agencies’ policies should include the following information:

how the agency pays for the uniforms (see section B);
a description of the type of uniform by employee group;
the reason why the uniform is required or paid for;
the taxability status of the uniform; and
the cost (dollar amount) per year for each employee.

B – Agencies may pay for uniforms using approved methods

1 – Agencies may provide employees with uniforms by:

paying for the uniforms directly;
giving employees an allowance for uniforms; or
reimbursing employees for their uniform expenses.

C – Agencies must determine uniform taxability

1 – In order to qualify as nontaxable, a uniform must be:

specifically required as a condition of employment; and
not worn as regular clothing or adaptable to general use.

2 – Even if the uniform is required by the agency, the uniform is still taxable if it can be adaptable to everyday wear, for example: polos, overalls, slacks, black shoes, etc.

3 – Placing an insignia or logo on regular clothing does not qualify as a uniform.

4 – All uniform allowances are taxable due to the administrative burden of maintaining an accountable plan as required by the IRS.

5 – Agencies are responsible and accountable for properly determining the taxability of the uniform. If an agency has questions, they should contact the GovOp’s Division of Finance for assistance.

D – Uniform payments must be properly coded

1 – If the agency purchases taxable uniforms directly from the vendor, they should code the purchase to object code 5121. Any payments coded to 5121 must follow section E1 for reporting the taxable amount to the employee.

2 – If the agency purchases non-taxable uniforms for their employees directly from the vendor, they should code the purchase to object code 6213.

3 – Reimbursements for non-taxable uniforms should be coded to object code 6213.

E – Taxable uniform payments must paid under the proper wage type

1 – If the agency purchases taxable uniforms directly from the vendor, they must report the amount to payroll by employee using wage type 1124.

2 – Reimbursements for taxable uniforms must be paid using wage type 1120.

3 – Allowances must be paid using wage type 1120.

F – Agencies may pay for PPE

1 – Agencies may pay for PPE as a part of their employees’ uniforms or separately.

2 – PPE is nontaxable when it is provided to protect employees from health and safety risks associated with usual business operations.

3 – PPE must be coded to object code 6296 in Vantage Financial.