Fringe Benefits are an important component for recruiting and keeping high quality employees in today’s business world. But the diversity of available fringe benefits can make the area of payroll compliance positively overwhelming!

BACKGROUND:
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 payroll 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 along comes a new tax bill by Congress that can 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.

FRINGE BENEFITS COVERED IN THIS COURSE:

Transportation Fringe Benefits

  • What are the four allowable methods to calculate the personal use of a company car
  • How to calculate the taxable wages for the personal use of a company vehicle using one of the four accepted IRS methods
  • When an auto allowance is considered taxable wages and when it is not
  • IRS 132 transportation fringe benefits including parking, bus passes and tokens and bicycles—when to tax and when not too
  • Calculating the personal use of a company aircraft even if there is a business trip involved somewhere

Section 132 Fringe Benefits

  • Working Condition Fringe Benefits
  • De Minimis Fringe Benefits
  • Employee Discounts
  • No additional cost services
  • Employee Achievement Awards for Length of Service and Safety-the changes under the new tax bill
  • Prizes and Awards—Cash and Noncash
  • Cell phones
  • Gift certificates and gift cards
  • Holiday gifts path

Meals, Clothing, Housing and Education Fringe Benefits

  • The changes to employer provided relocation under the Tax Cuts and Jobs Act of 2017
  • On-site lodging taxation and reporting
  • Taxing lodging for executives such as vacation condos
  • Providing meals for employees—is it taxable or not?
  • Are the rules different for on-site cafeterias
  • What if the employee pays for the meal—does that affect taxation
  • What to do with occasional meals
  • Educational assistance programs and taxation
Learning Objectives
  • Explore the requirements for benefits offered under Internal Revenue Code Section 132.
  • Discover how to properly handle the personal use of any company vehicle.
  • Recognize the requirements when employees receive benefits such as meals, clothing, housing, or education.
Last updated/reviewed: December 11, 2023
2 Reviews (8 ratings)

Reviews

5
Member's Profile
Very detailed and thorough information regarding taxation. Great instructor! Now only taking courses by Vicki for my CPP credits.

5
Member's Profile
I thought this was very well presented and full of useful dialog.

Prerequisites
Course Complexity: Foundational
No Advanced Preparation or Prerequisites are needed 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 Blitz for 2023: Taxing & Reporting Fringe Benefits5:36
  IRC 132 DE Minimis19:06
  IRS 132 Transportation9:28
  IRC 132 Miscellaneous6:34
  IRC 132 Meals11:14
  Transportation Business Use Personal Car7:40
  Transportation: Personal Use Company Car12:18
  Transportation: Personal Use Company Aircraft6:06
  Third Party Sick Pay13:42
  Educational Assistance and Relocation2:16
  Health Care5:16
  Gifts Prizes and Awards4:58
CONTINUOUS PLAY
  Fringe Benefits Blitz for 2023: Taxing & Reporting Fringe Benefits1:44:14
SUPPORTING MATERIAL
  Slides: Fringe Benefits Blitz for 2023: Taxing & Reporting Fringe BenefitsPDF
  Fringe Benefits Blitz for 2023: Taxing & Reporting Fringe Benefits GlossaryPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam