There are lots of ways to reward workers other than wages. Smart businesses understand the two-way importance of helping employees out with things like education, commute help, health and wellness, etc. The IRS also recognizes the economically stabilizing results of fringe benefits. They have categorized the many different types of benefits, and set limits on which the value does not have to be taxed to the worker. However, limitations exist on types and amounts of fringe benefits that are non-taxable to the worker. Making mistakes can result in audits, inquiries or assessments for unpaid taxes.
Specifically, IRS auditors are focusing on executive compensation. Stock options, golden parachutes, insurance and other perks are designed to keep your high priced executive talent in place. However, mismanagement of these benefits can subject you to not only payroll tax audits, but personal income tax audits for the executive.
Being both knowledgeable and choosy about which benefits you provide will go a long way in keeping workers motivated without breaking either your company’s or the workers’ budgets. Covid- 19 has made certain choices more beneficial, as the government will pay for things like mandated sick pay.
The IRS has an entire booklet on all the various types of fringe benefits. How confident are you in the proper reporting and taxability of the ones you offer, or would like to offer? Join Mark in this informative webinar. You will get the very latest maximum amounts and tax requirements announced for 2025, and much, much more.
- Definition of Fringe Benefits, and how to distinguish them from expense reimbursements
- What is new for 2025 –
- What is excludable from taxes and what you must withhold and pay payroll taxes on
- Cafeteria Plans – what can and can’t be included
- Use of Company Vehicles for personal use, and company use of employee’s personal vehicles.
- How to properly value a fringe benefit
- How to properly tax a fringe benefit
- Common errors to avoid.
- Rules of thumb for Fringe Benefit Administration
Types:
- Adoption Assistance
- Athletic Facilities
- De Minimus
- Dependent Care Assistance
- Educational Assistance
- Employee Discounts
- GTL Insurance
- Lodging
- Meals
- Moving Expense
- No Additional Cost Services
- Transportation
- Working Condition Fringe
- Moving Expenses
- Awards and Prizes
Executive Compensation
- Stock Options
- Deferred Compensation
- Golden Parachutes
- Statutorily Deductible Executive Fringe Benefits
- Section 132 of the IR
Why should you attend
Specifically, IRS auditors are focusing on executive compensation. Stock options, golden parachutes, insurance and other perks are designed to keep your high priced executive talent in place. However, mismanagement of these benefits can subject you to not only payroll tax audits, but personal income tax audits for the executive. Being both knowledgeable and choosy about which benefits you provide will go a long way in keeping workers motivated without breaking either your company’s or the workers’ budgets. Covid-19 has made certain choices more beneficial, as the government will pay for things like mandated sick pay. The IRS has an entire booklet on all the various types of fringe benefits. How confident are you in the proper reporting and taxability of the ones you offer, or would like to offer?
Who will benefit
- Compensation administrators.
- H/R and Payroll management.
- Tax and Financial officers and staff.
- Executives who receive a wide variety of benefits.
Speaker
Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that means to their business. He has processed weekly...
