Taxable vs Non-Taxable Fringe Benefits
Please see below for additional instructions and information regarding this program.
Employee expense reimbursements are subject to IRS guidelines and can be disallowed as expenses – and even considered compensation to those employees – if not handled correctly. Further, if employee expense reimbursements do not meet IRS guidelines, they may be disallowed as expenses and considered compensation to those employees, leaving the employer responsible for the associated payroll taxes – plus any penalties.
Taxable and nontaxable fringe benefit are scattered throughout the Internal Revenue Code. Benefits can be hid in Sec 274, 162, 119, 132, 127, and 82. Add in numerous Announcements, Notices and Regulations and we have a complex web. This course will concentrate on the development of an Accountable Reimbursement Plan under Sec 274 and accompanying regulations plus recent pronouncements and inflation increases.
Fringe Benefit Examples and How They Relate to W2 and 1099 preparation:
- Accountable vs. non-Accountable Expense Reimbursement Plans
- Record keeping requirements of Sec. 274 & Accountable Plans
- 50%, 80%, and 100% Deductible Meals
- De minimis fringe benefits
- No added cost benefits
- Cash payments
- Auto allowances
- Company vehicles
- Prizes, awards, gifts
We'll Answer These and Other Questions:
- What are the taxable and non-taxable wages?
- Are meal allowances nontaxable?
- Are travel allowances nontaxable?
- What other benefits are nontaxable wages?
- What meals are 100% deductible and nontaxable to employees?
What’s New - 00:01:15
Fringe Benefits - 00:11:33
The Tax Cuts and Jobs Act of 2017 - 00:29:47
Fringe Benefits and Accountable Plans - 00:41:55
Fringe Benefits - 00:54:54
Fringe Benefits Record Keeping - 01:15:06
Fringe Benefits Wrap Up - 01:29:45
Protect Yourself and Conclusion - 01:31:40
Q&A - 01:33:10
1099 MISC Box 7 - 00:04:00, 00:19:00, 00:41:58
Accountable Plans - 00:41:55
Federal Unemployment Tax (FUTA) - 00:13:30
FICA - 00:13:30
Independent Contractors - 00:19:00, 00:41:58, 00:48:30
- 119 - 01:11:28
- 132 - 00:19:37
- 274 - 00:30:50, 00:50:45
Schedule K-1 - 00:13:30
Tax Cuts and Jobs Act - 00:20:30, 00:29:47
B-Notice: A notice from the IRS stating that one or more tax ID numbers were missing from a 1099 or do not match the IRS records.
De minimus: Too trivial or minor to merit consideration.
Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.
Form W-9: Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). - Wikipedia (https://en.m.wikipedia.org/)
Form 1099: Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). - Wikipedia (https://en.wikipedia.org/)
Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)
Per Diem: (Latin for "per day" or "for each day") or daily allowance is a specific amount of money an organization gives an individual, often an employee, per day to cover living expenses when traveling for work. - Wikipedia (https://en.wikipedia.org)
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/)
Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center For Competitive Management,... View Full Profile