Let’s face it… complying with the Internal Revenue Tax Code requirements and federal regulations for fringe benefits such as relocation, meals, lodging, educational assistance, health insurance, transportation, and third-party sick pay can be complicated. The taxation and reporting for these fringe benefits offered by many companies today are major components of a payrol
l department’s responsibilities. And with the IRS looking for consistency of treatment—you can’t afford to make a mistake.
As a payroll professional, you must know cold—no guessing—when a fringe benefit is taxable and when it is not when it is reportable and when it is not. Payroll must know when providing a fringe benefit must be considered wages or if it is “tax-free”. What if the employee pays some of the cost of a fringe benefit? How does that affect taxing and reporting? Are there dollar limits? Does it become taxable after a certain amount? And after you have mastered all the facts a, a new tax bill by Congress n change everything you just learned when it comes to taxing fringe benefits.
All fringe benefits must be handled correctly, under the latest rules, to minimize the chance for penalties and interest to be levied against your company or for triggering larger and more intrusive governmental audits.
