Taxing Gifts, Awards and Other Fringe Benefits
Webinar Details $219
- Rated:
- Webinar Length: 100 Minutes
- Guest Speaker: Chuck Borek
- Topic: Taxation and Accounting, Human Resources, Compensation and Benefits
- Credit: ATATX 1.5, ATAPR 1.5
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As most employers know, wages or salary is only the tip of the iceberg when it comes to compensating employees. Not only is there a slew of withholding and payroll tax issues to contend with, compensation is rarely confined to the employee’s regular paycheck. In an increasingly competitive employment market employers are turning to various fringe benefits and other incentives to attract and retain qualified employees. In this session we will address the ins and outs of compensation that goes beyond the standard paycheck– the dos, the don’ts and the cannots.
The topics covered will include:
- The viability of non-taxable gifts to employees
- Definition of a fringe benefit
- Distinguishing taxable from nontaxable fringe benefits
- Accountable reimbursement plans
- The multiple layers of educational benefits
- Using ownership interests as incentive compensation
- Requirements for incentivizing employees with achievement awards
Level: Intermediate
Format: Recorded webcast
Instructional Method: QAS Self Study
NASBA Field of Study: Accounting
Program Prerequisites: None
Advance Preparation: None
- Introduction
- Fringe Benefit Taxation 00:01:47
- Fringe Benefit Taxation - Fair Market Value 00:06:47
- Fringe Benefit Taxation - Withholding Tax 00:09:52
- Fringe Benefit Taxation - Year-End Exceptions 00:12:32
- Excludable Fringe Benefits - Services 00:15:29
- Excludable Fringe Benefits - Employee Discounts 00:18:26
- Excludable Fringe Benefits - Working Conditions 00:20:11
- Excludable Fringe Benefits - De Minimus Fringe Benefits 00:22:53
- Excludable Fringe Benefits - Qualified Transportation 00:28:22
- Excludable Fringe Benefits - Athletic Facilities 00:31:23
- Excludable Fringe Benefits - Qualified Retirement Planning 00:33:10
- Excludable Fringe Benefits - Achievement Awards/Accident and Health Benefits 00:35:29
- Section 125 (Cafeteria) Plans 00:39:47
- Excludable Fringe Benefits - Adoption Assistance 00:41:49:
- Excludable Fringe Benefits - Dependent Care Assistance 00:43:44
- Excludable Fringe Benefits - Educational Assistance 00:45:14
- Excludable Fringe Benefits - Moving Expense Reimbursement 00:46:30
- Excludable Fringe Benefits - Group-Term/Dependent Life Insurance Coverage 00:47:12
- Excludable Fringe Benefits - Lodging on Your Business Premises 00:48:20
- Excludable Fringe Benefits - Meals 00:49:09
- Included Benefits 00:49:57
- Included Benefits (cont’d) 00:50:40
- Practical Concerns 00:53:19
- Fringe Benefits Run Through AP 00:54:21
- Questions 00:55:16
- Presentation Closing 01:01:02
- Audit 00:23:29
- Constructive Receipt (CR) 00:10:02
- De Minimus Fringe Benefits 00:23:03, 00:26:08
- Fair Market Value (FMV) 00:06:57, 00:07:25
- Federal Insurance Contributions Act (FICA) 00:42:09
- Federal Unemployment Tax Act (FUTA) 00:42:09
- Form W-2 00:13:38
- Fringe Benefits 00:01:26, 00:07:46, 00:10:50, 00:15:36, 00:31:29
- Internal Revenue Code (IRC) 00:02:04, 00:04:09
- Section 125 Cafeteria Plan 00:39:50
- Special Accounting Rule 00:12:42, 00:14:10
501(c)(3): A 501(c)(3) organization is a corporation, trust, unincorporated association, or other type of organization that is exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is the most common type of the 29 types of 501(c) nonprofit organizations in the United States. (en.wikipedia.com)
Accountable Plan: An accountable plan is a plan that follows the Internal Revenue Service (IRS) regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. ... However, these expenses must be business-related to fall under an accountable plan.
Audit: A formal examination of an organization's or individual's accounts or financial situation
De Minimis: Too trivial or minor to merit consideration.
Expense Reimbursement: Expense reimbursement is a method for paying employees back when they spend their own money on business-related expenses. These expenses generally occur when an employee is traveling for business but can occur in other work-related situations. (www.thebalancecareers.com)
Form 706: Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return is an Internal Revenue Service (IRS) form used by an executor of a decedent's estate to calculate the estate tax owed, according to Chapter 11 of the Internal Revenue Code (IRC).
Form 709: Form 709 is used to report to the IRS any taxable gift money that is subject to the gift tax or generation-skipping transfer taxes. The form is called the United States Gift (and Generation-Skipping Transfer) Tax Return.
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.
IRC Section 132: Internal Revenue Code Section 132(a) provides eight types of fringe benefits that are excluded from gross income
IRC Section 61: Section 61(a) of the Internal Revenue Code defines gross income as income from whatever source derived, including (but not limited to) “compensation for services, including fees, commissions, fringe benefits, and similar items.”
Limited Liability Company (LLC): An LLC is a corporate structure where members cannot be held accountable for the company’s debts or liabilities. This can shield business owners from losing their entire life savings if, for example, someone were to sue the company. Can be a single member (much like a sole proprietor) or a multi-member. It shares certain traits of both corporations as well as partnerships or sole proprietorships. It is not a corporation.
S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.
Tangible Personal Property: Tangible Personal Property Tax is an ad valorem tax assessed against the furniture, fixtures and equipment located in businesses and rental property. Ad valorem is a Latin phrase meaning “according to worth”. This tax is in addition to your annual Real Estate or Property Tax.
Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.
Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
Working Condition Fringe Benefit: The working condition benefit is a type of fringe benefit employers offer employees. Working condition benefits include property and services employers provide to employees so they can perform their jobs.
