Taxable and nontaxable fringe benefits

[Adam Fleming]

The Internal Revenue Service (IRS) has guidelines and laws for the way fringe benefits have to be taxed. First, an introduction to fringe benefits: Anything that is in addition to a person’s regular salary may be termed a fringe benefit. It is usually linked to an employee’s performance. Some of the common types of fringe benefits include children’s education, vehicle for commuting to the workplace and back, health insurance, retirement benefits and many others.

The IRS taxes certain kinds of fringe benefits that come under designated categories, while some other kinds of fringe benefits are not taxed. Taxable and nontaxable fringe benefits are a major aspect of taxation laws in the US and have to be implemented in strict accordance with what is set out in the law. There is a long list of taxable and nontaxable fringe benefits.

A few examples of nontaxable fringe benefits

Stock options, employee discounts, savings that are made for retirement planning and other related benefits are part of nontaxable fringe benefits. Also, certain types of De Minimis benefits, depending on their value, need not be accounted for and filed under W-2.

A few examples of taxable fringe benefits

Other fringe benefits like accident benefit, vehicle that is provided from an employer and is for personal use, expenses incurred on vacation, and many other types of benefits are taxable and have to be accounted for and filed.

When declaring and filing these, the right method has to be followed. Filing for the said taxable and nontaxable fringe benefits has to be done under the appropriate head, following the right procedures. The right knowledge has to go into understanding what to consider as taxable fringe benefits and what to classify as nontaxable fringe benefits. Claiming the fair market value of taxable fringe benefits is of the essence in making the declaration of taxable and nontaxable fringe benefits.

Get to understand how to follow the right procedures for taxable and nontaxable fringe benefits

To gain a complete understanding of these aspects of the IRS, please enroll for a valuable webinar from Compliance4All, a leading provider of professional trainings for all the areas of regulatory compliance. This session will give a complete understanding of how to classify taxable and nontaxable fringe benefits.

At this important webinar, Greta Hicks, who is a former IRS Revenue Agent and Regional Training Coordinator, will be the speaker. She will take participants through all the important aspects of taxable and nontaxable fringe benefits that will help them understand how to get this right. To gain insights into how to get taxable and nontaxable fringe benefits right, please register for this webinar by logging on to http://www.compliance4all.com/control/w_product/~product_id=501196L...

Learn about the taxable and nontaxable fringe benefits to avoid penalties

This webinar is highly useful for those who have some confusion about taxable and nontaxable fringe benefits. Since there are many items that are classified under both taxable and nontaxable fringe benefits; clarity on each of these will go a long way in helping to understand the correct method of filing.

The learning from this webinar is important also because not only are the wrong expenses may disallowed by the IRS; filing under the wrong classification could result in penalties, too. Greta will offer complete clarity on benefits that can be hid in Sections 274, 162, 119, 132, 127, and 82. She will also give an understanding of numerous Announcements, Notices and Regulations, all of which have to be assiduously adhered to.

In addition, she discuss a few areas of taxable and nontaxable fringe benefits that offer scope for ambiguity, such as:

o  What are taxable and non-taxable as wages?

o  Are meal allowances nontaxable?

o  Are travel allowances nontaxable?

o  What other benefits are nontaxable wages?

o  What meals are 100% deductible and nontaxable to employees?

o  What meals are 80% deductible and nontaxable to employees?

o  What meals and entertainment are 50% deductible and nontaxable to employees?

At this session, Greta will cover the following areas:

o      Which benefits go on the w-2?

o      Do any benefits go on a 1099?

o      Fringe benefits you might be missing

o      Accountable employee reimbursement plan

o      What employee benefits are non-taxable to employees?

o      What/when expenditures are wages to employees?

Fringe Benefit Examples and How They Relate to W2 and 1099 preparation:

o      Accountable vs non-Accountable Expense Reimbursement Plans

o      Record keeping requirements of Sec. 274 & Accountable Plans

o      50%, 80%, and 100% Deductible Meals

o      De Minimis fringe benefits

o      No added cost benefits

o      Cash payments

o      Auto allowances

o      Company vehicles

o      Prizes, awards, gifts

https://www.hr360.com/Employee-Benefits/Fringe-Benefits/Introductio...

https://www.paychex.com/articles/finance/taxable-vs-nontaxable-frin...

http://smallbusiness.chron.com/list-nontaxable-fringe-benefits-2117...

http://www.moneycrashers.com/taxable-fringe-benefits-income/

https://justworks.com/blog/ins-outs-fringe-benefits-non-taxable