In this course we discuss fringe benefits that are and are not subject to taxation, and the IRS guidelines used to make that determination.
We start with a brief overview of fringe benefits. From there we discuss IRS codes used for fringe benefits. This leads to a conversation about taxable vs. non-taxable fringe benefits. Then we work through examples of fringe benefits being provided to an employee by employer. Then we review transactions and discuss how the taxes are calculated for fringe benefits as to an employee being taxed or an employer grossing up taxation.
This course is a review for accounting and payroll professionals who need to sharpen their fundamental understanding of fringe benefits and how they translate into taxable or non-taxable income for employees.
Learning Objectives
- Recognize fringe benefits and their taxability
- Identify the concepts of Gross Income and Fair Market Value
- Explore additional employer provided benefits and taxability
- Identify other payments to employees and their effect on taxable earnings
- Explore the reporting and withholding of taxes on taxable cash and non-cash fringe benefits
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Prerequisites
No advanced preparation or prerequisites are required for this course.