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
Last updated/reviewed: August 19, 2023
154 Reviews (546 ratings)

Reviews

5
Anonymous Author
Instructor was very knowledgeable and I learned some things I never even knew existed such as working condition fringes. The last exam question I don't recall her talking about at all so was clueless about the taxability of bus fare in 2016. I would have liked to hear more about the special rules for employees using a company vehicle as taxable fringe benefit.

5
Member's Profile
Any income that you have received from your employer as an allowance, perquisite or fringe benefit should be reported on your tax return. These forms of income include cash allowances, liability of employees discharged by employers, convertible benefits, education benefits and holiday journey benefits.

3
Anonymous Author
Course was interesting to see the perspective without any knowledge of payroll and fringe benefits. Wish there was more sufficient sides with detailed information and more examples of each of the fringe benefits. Needed more information on some of the sides instead of bullets of simple subjects.

4
Member's Profile
There was information provided in the the webinar not included in the slides, and the information is pertinent when gaining a full understanding of the subject matter. The objectives were met, but the slides need to include more details instead of just bullets of what is being discussed.

4
Member's Profile
I found this course to be a good refresher, however the section about qualified moving expenses needs to be updated to reflect changes that were made in 2018. Speaking a little slower and using a few more real life examples would have been helpful, but overall the course was beneficial.

3
Member's Profile
Overall the class was ok, the handouts were nothing more than bullet points. I don't believe there were enough examples and definitely not on the slides for review. The speaker either did not study the material prior to the recording or she just didn't know how to pronounce the word.

4
Anonymous Author
It was hard to understand speaker at times, but she did stay on track with the required material. I also felt like her information contradicted what she had previously stated at times. But overall I got the information I was looking for out of the course.

5
Anonymous Author
This course is extremely informative on the subject matter. The instructor does a good job explaining a good amount of information in the allocated time period. Will take additional courses taught by this teacher, she is very good and knowledgeable

4
Member's Profile
Hi, I think the content needs to be updated, there were major changes to the law in 2018 regarding taxation of relocation. Also, I feel the slides should be more robust as I feel they are something for me to look back on after the course.

4
Member's Profile
This course was beneficial because it provided refresher information on fringe benefits. I would like to have more detailed information in the slides. Any officer or payroll employee would benefit from this course.

4
Anonymous Author
A fine overview of the tax classification of fringe benefits. I would have also appreciated a discussion on Sec 125 plans and retirement plans and the classification of each of those benefits for tax purposes.

5
Member's Profile
The lesson was good, but the course materials could have been better. They seem to include highlights only and not as many details as were discussed, so it makes it difficult to use as a reference for later.

3
Anonymous Author
The course was informational however the slides could have been more detailed and had more information. It is useful to have slides that are explanatory so that they can be used as a resource in the future.

2
Anonymous Author
I like the speaker. This course tells us that moving expense reimbursement is excludable from income. Since 2017 , this has not been the case with a few very limited exceptions. This content is very old!

4
Member's Profile
There was a lot of great information provided in this course. The instructor gave a professional presentation. A couple times, the content was repetitive. Overall, a great summary of fringe benefits.

4
Anonymous Author
This course was a great overview of the taxability of employer fringe benefits and gives viewers a good basic understanding of what should and should not be included in taxable income of employees.

3
Anonymous Author
I would like to see more detailed examples for imputed benefits. Please show how to calculated the imputed value of a company leased vehicle and the imputed value of a company owned vehicle.

3
Member's Profile
the information was presented in a clear and organized manner, but is out of date in 2023, almost 2024 and should be updated as the relocation information has been out of date for years.

3
Anonymous Author
It's been said a couple times, but the squeaky wheel gets the oil... A little outdated, but the instructor was easy to understand and it was presented in an easy to understand format.

3
Member's Profile
I don't have experience with payroll so this was a good introduction. However, there were typos on the slides, and you could hear the pages of the script being turned in the background.

4
Member's Profile
It's a really good course that summarizes non-fridge benefits. My only complaint about this and other Illumeo courses:it is outdated. The presentation is from 2016. Common, it's 2021!

4
Anonymous Author
Good course overall, served as a general refresher. The supporting materials included many relevant examples; however, the content and flow wasn't as concise as other courses offered.

4
Anonymous Author
Good overview of fringe benefits. Course could have been a bit longer and included more particulars surrounding imputed income calculations on company cars and gross up calculations.

4
Member's Profile
I appreciate that the instructor didn't use video, which can be distracting. On the other hand, the slides did not list the numerous % and $ amounts that are critical to this topic.

4
Member's Profile
Course provided decent amount of information on the subject and explained it in a very basic format. Could have gone in to greater detail but was good for a brush up on Fringes.

2
Anonymous Author
The instructor shared a lot of good information and examples; however, a good amount of that information was not included in the slides. This made the slides rather useless.

3
Member's Profile
The course was a little slow, and the questions at the end were very specific and mostly not very relevant. I'm pretty sure one of them was not even covered in the course.

5
Member's Profile
It would be nice if the dollar amounts were updated to reflect actual years relevant data, but other than that the principles were accurate and the class is still great!

1
Anonymous Author
This course was not very good. The source materials were merely bullet points and the presentation was not sufficient to be able to answer the review or exam questions.

4
Member's Profile
A good introduction to taxable and non-taxable fringe benefits. I was looking for documentation of narrative in the supporting slides but only the outlines were shown.

5
Anonymous Author
great re-cap of fringe benefits for everyone. Several concepts are very helpful. knowing the difference between subject to tax vs. just social security and medicare

3
Anonymous Author
the lesson is good, but the slides are very bullet point. I had to make so many notes on them just to use them later as reference. I hope i didn't miss something.

4
Member's Profile
it was ok - unfortunately one of the exam questions is wrong. In 2016 there was TALK of reducing the commuter exp to $130/mo, but the PATH act allowed $250.

5
Member's Profile
Great course. A solid overview of what was covered during FPC class. Always good to take a class which goes over the areas which are affected by taxation.

3
Anonymous Author
The instructor is not as well-spoken. Her delivery of the information is a distraction and hinders one's ability to adequately absorb the information.

3
Member's Profile
More slides with detail would have been helpful. A few times the instructor went off talking about things that weren’t necessary to be mentioned.

4
Member's Profile
This course was good at explaining the difference between taxable and non taxable. It helped me to better understand the use of de minimis fringe.

3
Anonymous Author
This is good information and a good review from when I took the CPP exam. There were parts where it seemed like the instructor was reading to us.

1
Anonymous Author
Poor material provided for support compared to many of the other courses. Test questions were ambiguous. Not impressed with this course at all.

5
Member's Profile
There was a lot of content in the short amount of time. Facilitator is very knowledgeable and has a pleasant voice, making it easier to follow.

5
Member's Profile
An excellent overview of the difference between taxable and non-taxable fringe benefits. Pay close attention to what is and isn't excludable!

3
Member's Profile
I think this course should be updated given changes in the tax law. Noted mainly with moving expenses as treatment has completely changed.

4
Anonymous Author
This was a good introduction to the different types of fringe benefits and determining which categories are taxable vs. nontaxable.

2
Anonymous Author
The slides are not very good for referencing or studying from. Limits and tax changes not reflected in course. Pretty outdated.

5
Member's Profile
Very good overview for a new profressional. Having a more recent version would be helpful due to the tax code changes after 2016

4
Member's Profile
the slides were not legible when printed because it came out white letters on white background. not sure if issue is on my end.

1
Member's Profile
Needs to be updated!! from 2016...........................................................................................

3
Anonymous Author
This is a decent recap of payroll tax nuances. The delivery is a little dry, but I did appreciate the in-session quiz.

4
Anonymous Author
Overall good course. More real life examples of taxable and non taxable income will make the course easier to follow.

5
Anonymous Author
Good to remember that certain items are taxable to employees. companies often forget the rules or at least choose to

4
Anonymous Author
Would have been better if the slides included more of what the instructor was teaching, like examples or scenarios.

5
Member's Profile
I learned important information on taxing fringe benefits! The video was clear and explained the information well.

5
Member's Profile
this is a quick review of what is taxable and nontaxable for fringe benefits. the last question says 2016 though

5
Member's Profile
Excellent course! Shirley's presentation was succinct and to the point with approriate real-life case examples.

5
Member's Profile
Well written, comprehensive and written at the appropriate level. Helpful for those brushing up on this topic.

3
Anonymous Author
Good content, but the speaker was hard to follow because of mispronounced words and reading style of teaching.

4
Member's Profile
liked the course - would like to hear about best methods for gathering the information to tax the employee.

3
Member's Profile
The information is spoking in the presentation but not clearly documented so found the test hard to determine

4
Member's Profile
Good review of fringe benefits. Many examples which help to better understand. I would recommend this class.

5
Member's Profile
Great overview of what is and is not taxable. Not being familiar with payroll, it was very informational.

4
Anonymous Author
Good coverage but needs to be updated regularly for the tax rule changes. Some of it is no longer correct.

4
Anonymous Author
Appreciate the attempt to keep the slides brief but could have used a little more to drive the point home.

5
Anonymous Author
Nice refresher on fringe benefits and great introductory information. I look forward to the next course.

5
Anonymous Author
This course was easy to navigate and I enjoyed the mini quizzes, they helped me learn the course better.

2
Member's Profile
supporting materials were weak and the information on the final exam wasn't really covered in the course

3
Anonymous Author
The instructor gives a good overview of Fringe benefits. Would have liked it to be a bit more detailed.

5
Member's Profile
Great class. I like that it is to the point and informative. The course instructor is great at her job.

5
Member's Profile
Wonderful content for payroll professionals. This topic is always helpful and a good reminder annually.

5
Member's Profile
Good content with clear explanations of different aspects of taxable and non-taxable fringe benefits.

3
Member's Profile
More examples of taxable vs. nontaxable scenarios, like what we received in the exam would be nice.

4
Member's Profile
This course gives great info on fringe benefits and helps to clarify the different types of fringe.

5
Anonymous Author
The program materials were relevant and contributed to the achievement of the learning objectives.

4
Member's Profile
Course was helpful but I felt that the quiz questions could be deleted as they were way too easy.

5
Member's Profile
The instructor goes at good pace giving you enough examples and time to understand the material.

2
Anonymous Author
Material is outdated. Would have liked more details from the bullet points for the pdfs slides.

4
Member's Profile
it's good and convenient for those people who work with company that don't reimburse expenses.

5
Anonymous Author
This course was very informative. I especially like that there is a review after each section.

4
Anonymous Author
This class was informative and gave some good information on the taxability of fringe benefits.

5
Member's Profile
Great course for a refresher. The materials are those that I would keep for future reference.

5
Member's Profile
Good overview of taxable and non-taxable benefits, with a particular focus on fringe benefits.

4
Anonymous Author
Always good practive to review the guidelines and rules of fringe benefits on a regular basis.

5
Member's Profile
This was a good review of taxable fringe benefits vs non-taxable. Good coverage of FMV too.

3
Member's Profile
Some of this information is out of date, specifically the taxability of relocation expenses.

4
Anonymous Author
It would be nice to have more details on the slides or references to the IRS code sections.

4
Anonymous Author
The examples provided made it better to follow the information provided by the instructor.

2
Member's Profile
The presenter's communication skills could be much better, and the slides were inadequate.

3
Anonymous Author
Good material - more information in slides would be nice. Not just the main bullet points

5
Anonymous Author
I found the topic of this course interesting and the instructor was great at explaining it

4
Anonymous Author
Great refresher - these are always so confusing so the information is always appreciated

5
Anonymous Author
wonderful course with absolutely great content - I will highly recommend to my colleagues

3
Anonymous Author
I would like to have seen some more detail on the items discussed included in the slides.

4
Anonymous Author
This course provided valuation information to the finance team to prepare for year end.

4
Member's Profile
Would have liked a little more detail around company provided food, cell phone, etc.

5
Member's Profile
I thought this course covered the basics and was a good refresher on fringe benefits.

3
Anonymous Author
The relocation information is out of date for tax year 2023. This should be updated.

5
Anonymous Author
This class had a lot of informative information. I found it especially beneficial.

2
Anonymous Author
There needs to be a more updated course-the rules from 2016 are very different now.

3
Member's Profile
Thank you for the explanation of Fringe Benefits. It was helpful and informative.

3
Anonymous Author
language wasn't as free flowing and was a bit choppy but otherwise course was good

5
Anonymous Author
The material was easy to understand. The speaker was knowledgeable on the subject.

5
Member's Profile
The examples for working condition fringes and transportation fringes were nice.

5
Anonymous Author
Very educational and good reminders on this important topic. Thanks for sharing.

5
Anonymous Author
Great course, thank you very much. It's very informative. Good job. Great slides.

4
Member's Profile
informative course. Provides additional information on this misunderstood topic

5
Anonymous Author
This is a good basic class on fringe benefits. The instructor is informative.

5
Anonymous Author
Helpful review of fringe benefits and how to determine which ones are taxable.

5
Anonymous Author
I liked that it was concise with good information. Provided helpful examples.

5
Member's Profile
Shirley’s course on Fringe Benefits was well presented and easy to follow.

5
Member's Profile
Detailed information with good references to sources to ensure compliance.

5
Member's Profile
This webinar was very educational. Thank you for allowing me to view it.

4
Anonymous Author
I would've appreciated the limits on the handouts as additional reference

4
Member's Profile
The handouts can be more detailed so as to be used as a future reference.

5
Anonymous Author
I really enjoyed this class. I like that Shirley has review questions.

3
Anonymous Author
outdated info that needs to be updated to reflect more recent tax changes

3
Anonymous Author
Good Class. Very informative and helpful tips that can be used for work.

5
Member's Profile
Very are to read the PDF, class overall is a great topic for payroll.

5
Anonymous Author
good course on the overview of fringe benefits and rules relating them

4
Anonymous Author
All payroll staff should take this course. I found it very informative

3
Member's Profile
Course needs to be updated for new moving expense reimbursement rules

5
Anonymous Author
Great refresher. Very well taught and good content. Thank you,

5
Member's Profile
I hate inputting information in this section. it's a waste of time.

5
Anonymous Author
Nice primer on payroll issues that commonly occur in my environment.

5
Anonymous Author
Very information with real life examples provided by the instructor.

4
Anonymous Author
Provided broad overview of concept. Instructor explained topic well.

3
Anonymous Author
I would have preferred discussion on more types of fringe benefits.

5
Member's Profile
I think that I am going to have to have a review with my employer.

4
Anonymous Author
Good examples for fringe benefits and the tax implications, if any.

Anonymous Author
Kind of boring and monotonous but good information on the subject.

3
Anonymous Author
overall good wish instructor would stop the"um" every other word

4
Anonymous Author
Good info, slides would have been more helpful with more detail.

4
Anonymous Author
Good course, information was informative for the business world.

5
Anonymous Author
This webinar was a great refresher course for fringe benefits.

4
Anonymous Author
Great reminder on fringe benefits and its applicable taxation.

4
Anonymous Author
This is a great course on fringe benefits with good examples.

3
Anonymous Author
There was a lot of very good information in this webinar!!!!!!

4
Member's Profile
supplement info was not complete, but good info for the course

4
Anonymous Author
The material regarding taxation of moving expense is outdated.

1
Member's Profile
All she did was read a script, little if any help on anything.

5
Anonymous Author
Could be improved by expanding glossary for reference guide.

5
Anonymous Author
This is really Great lesson. I learned a lot in this course.

3
Member's Profile
course needs to be updated for current moving expense rules.

3
Anonymous Author
thought this class was perfect for an FCP or CPP certificate

5
Member's Profile
quick, insightful and informative course on fringe benefits

4
Member's Profile
A good summary of fringe benefits. Informative and helpful!

5
Member's Profile
Did not know the rules for bus tokens, that's interesting.

3
Anonymous Author
good intro to fringe benefits and taxability for employees

5
Member's Profile
Moved at a reasonable pace and was very understandable.

5
Member's Profile
Excellent refresher for fringe benefits and tax status.

4
Member's Profile
More examples should have been provided in this course.

Member's Profile
A very basic overview of fringe benefits.

4
Member's Profile
Good coverage of all possibilities.

4
Member's Profile
I thought there would more details.

4
Anonymous Author
ok

Anonymous Author
ds

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Fringe Benefits? Are They Taxable or Non-Taxable Income to the Employee?1:42
Fringe Benefits
  Fringe Benefits: Compensation/Gross Income and Fair Market Value9:42
  Non -Taxable Fringe Benefits 7:56
  Non -Taxable Fringe Benefits (Continued) 9:48
  Imputed Income 11:21
CONCLUSION
  Other Payments and Course Summary 6:46
Continuous Play
  Fringe Benefits? Are They Taxable or Non-Taxable Income to the Employee?47:15
SUPPORTING MATERIALS
  Slides: Fringe BenefitsPDF
  Fringe Benefits Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam