Taxing Gifts, Awards and Other Fringe Benefits
Please see below for additional instructions and information regarding this program.
Companies are providing more fringe benefits to employees than ever before, which increases company costs but raises employee morale. Because of this the IRS has more to say on which Fringe Benefits are taxable and which are not. The IRS puts a lot of regulation around how the fringe benefit is given for non-taxable fringe benefits. This program will provide guidance on how you can determine when a benefit becomes taxable.
Participants will walk away with a better understanding of the IRS views on fringe benefit taxation. The details of the IRC exceptions allowed by the IRS will be detailed and explained thoroughly. Participants will also be able to better identify and calculate the fair market value of fringe benefits for taxation purposes.
- Review FMV (Fair Market Value) and how the IRS determines it.
- Discussion on No additional cost services, employee discounts, working condition fringe benefits & De minimis Fringe Benefits.
- Review qualified transportation benefits
- Discuss several excludable fringe benefits such as Retirement planning, athletic facilities, achievement awards etc.
- Discuss fringe benefits that should be taxable
- Review Moving/Relocation Expenses
- Review executive taxation items, like spousal travel. Company aircraft usage etc.
- Once a benefit is determined taxable, how to handle it
- Current changes due to tax reform
- Learn FMV (Fair Market Value) and how the IRS determines it.
- Learn Moving/Relocation Expenses
- Learn qualified transportation benefits
- Fringe Benefit Taxation 00:02:07
- Fringe Benefit Taxation - Fair Market Value 00:07:35
- Fringe Benefit Taxation - Withholding Tax 00:10:26
- Fringe Benefit Taxation - Year-End Exceptions 00:13:02
- Excludable Fringe Benefits - Services 00:16:26
- Excludable Fringe Benefits - Employee Discounts 00:19:29
- Excludable Fringe Benefits - Working Conditions 00:21:20
- Excludable Fringe Benefits - De Minimus Fringe Benefits 00:23:36
- Excludable Fringe Benefits - Transportation 00:29:58
- Excludable Fringe Benefits - Athletic Facilities 00:32:52
- Excludable Fringe Benefits - Qualified Retirement Planning 00:34:47
- Excludable Fringe Benefits - Achievement Awards/Accident and Health Benefits 00:36:51
- Section 125 (Cafeteria) Plans 00:40:20
- Excludable Fringe Benefits - Adoption Assistance 00:43:08
- Excludable Fringe Benefits - Dependent Care Assistance 00:45:12
- Excludable Fringe Benefits - Educational Assistance 00:46:51
- Excludable Fringe Benefits - Moving Expense Reimbursement 00:48:15
- Excludable Fringe Benefits - Group-Term/Dependent Life Insurance Coverage 00:49:03
- Excludable Fringe Benefits - Lodging on Your Business Premises 00:50:31
- Excludable Fringe Benefits - Meals 00:51:49
- Included Benefits 00:52:41
- Included Benefits (cont’d) 00:53:27
- Practical Concerns 00:55:15
- Fringe Benefits Run Through AP 00:55:48
- Questions 00:56:22
- Presentation Closing 01:11:24
- De Minimus Fringe Benefits 00:23:38
- Fair Market Value (FMV) 00:07:56
- Federal Insurance Contributions Act (FICA) 00:43:45
- Federal Unemployment Tax Act (FUTA) 00:43:46
- Form W-2 00:27:10
- Fringe Benefits 00:01:22, 00:21:23
- Internal Revenue Code (IRC) 00:02:57
- Section 125 Cafeteria Plan 00:40:22
- Special Accounting Rule 00:13:10
De Minimus Fringe Benefits: De minimis fringe benefits are low-value perks provided by an employer; de minimis is legal Latin for "minimal". Perks that are determined to be de minimis fringe benefits may not be accounted or taxed in some jurisdictions as having too small value and too complicated an accounting.
Fair Market Value (FMV): The term fair market value is used throughout the Internal Revenue Code among other federal statutory laws in the USA including Bankruptcy, many state laws, and several regulatory bodies. In litigation in many jurisdictions in the United States, the fair market value is determined at a hearing.
Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Federal Unemployment Tax Act (FUTA): The Federal Unemployment Tax Act (FUTA) is a federal law that imposes an unemployment tax on employers. The FUTA tax funds the federal government's oversight of each state's unemployment program. Only employers pay FUTA tax. You must deposit the tax quarterly and file an annual form.
Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)
Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.
Internal Revenue Code (IRC): The Internal Revenue Code, formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code.
Section 125 Cafeteria Plan: A Section 125 Cafeteria Plan is an employer-sponsored benefits plan that lets employees pay for certain qualified medical expenses – such as health insurance premiums – on a pre-tax basis. Contributions to the cafeteria plan are made before taxes are taken out of their paychecks.
Special Accounting Rule: You can treat the value of taxable noncash benefits as paid on a pay period, quarter, semiannual, annual, or other basis, provided that the benefits are treated as paid no less frequently than annually.
Dayna is currently the Payroll Tax Manager at PetSmart Inc. Dayna has been heavily involved in the payroll field over 15 years. Starting as a payroll clerk at a small Tucson company, Dayna moved on to be a Payroll Team Leader at Honeywell Inc. During Dayna’s time at Honeywell she obtained her FPC (Fundamental Payroll Certification) through the American Payroll Association. She also received several merit awards for Customer Service and Acquisitions and Divestitures. Dayna is no stranger to teach... View Full Profile
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