It’s that time again — the end of the year, where annual tax forms, employee gifts, and holiday celebrations all blur together.
The last weeks of the month are also the time to start thinking about employees gifts. Gifts are a great idea — and even better if your employees don’t have to pay lots of income taxes on the year end rewards you give them.
And according to a study conducted by Towers Watson, strong managers who recognize employee performance can increase employee engagement by almost 60%. One creative way to do that, of course, is with end of year rewards that aren’t simply cash.
But how do you know which employee rewards are taxable? This eBook discusses the ins and outs of fringe benefits, which is defined as an extra benefit that supplements an employee’s salary.
Fringe benefits like FSAs can be confusing, but they don't have to be.
In particular, you’ll learn:
- Fringe benefits definition - Understand the IRS definition of a fringe benefit, with further explanation.
- Fringe benefits tax - Know which fringe benefits are taxable and the exceptions
- Tax deduction eligibility - Find out how non-employees, like an employer, may be eligible for fringe benefit tax deductions. This includes employees who own stock in an S-Corporation, Highly Compensated Employees (HCEs), and key employees who own parts of the business.
- Fringe benefits examples - Learn the 28 fringe benefits that can be excluded from income tax, along with more detailed descriptions of which exemptions apply.
For example, did you know that adoption assistance, achievement awards, and work-related education assistance may be excluded from taxable income?
You can learn about the other 25 excluded fringe benefits by downloading the book here.
If you’re looking for more information on fringe benefits, you can check out Fringe Benefits 101, which includes a roundup of articles on the difference between a benefit and a perk, employee perks that help attract talent, incentives that improve workplace performance, and steps for starting an employee recognition program at your business.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.