Fringe Benefits - How to keep a happy workforce while not incurring unnecessary payroll and income tax expense

There are lots of ways to reward workers other than wages. Smart businesses understand the two-way importance of helping employees out with things like education, commute help, health and wellness, etc. The IRS also recognizes the economically stabilizing results of fringe benefits. They have categorized the many different types of benefits, and set limits on which the value does not have to be taxed on the worker.

However, limitations exist on types and amounts of fringe benefits that are non-taxable to the worker. Making mistakes can result in audits, inquiries or assessments for unpaid taxes.

Session Highlights:

• Definition of Fringe Benefits, and how to distinguish them from expense reimbursements.
• What is new for 2021 – including COVID 19 considerations.
• What is excludable from taxes and what you must withhold and pay payroll taxes on.
• Types:
• Adoption Assistance
• Athletic Facilities
• De Minimus
• Dependent Care Assistance
• Educational Assistance
• Employee Discounts
• GTL Insurance
• Lodging
• Meals
• Moving Expense
• No Additional Cost Services
• Transportation
• Working Condition Fringe
• Moving Expenses
• wards and Prizes
• Cafeteria Plans – what can and can’t be included.
• Use of Company Vehicles for personal use, and company use of employee’s personal vehicles.
• How to properly value a fringe benefit.
• How to properly tax a fringe benefit.
• Executive Compensation.
• Stock Options
• Deferred Compensation
• Golden Parachutes
• Statutorily Deductible Executive Fringe Benefits
• Section 132 of the IRC

Why Should You Attend:

Specifically, IRS auditors are focusing on executive compensation. Stock options, golden parachutes, insurance and other perks are designed to keep your high-priced executive talent in place. However, mismanagement of these benefits can subject you to not only payroll tax audits, but personal income tax audits for the executive.

Being both knowledgeable and choosy about which benefits you provide will go a long way in keeping workers motivated without breaking either your company’s or the workers’ budgets. Covid-19 has made certain choices more beneficial, as the government will pay for things like mandated sick pay.

The IRS has an entire booklet on all the various types of fringe benefits. How confident are you in the proper reporting and taxability of the ones you offer or would like to offer?

Who Should Attend:

• Compensation administrators
• H/R and Payroll management
• Tax and Financial officers and staff
• Executives who receive a wide variety of benefits