DESCRIPTION
Fringe benefits are an integral part of a compensation package for employees today. When determining what fringe benefits to provide the first question that usually arises is “how are we going to do it”. But your task doesn’t stop once that question is answered and the fringe benefit is provided. Now you must understand what the IRS taxation and reporting requirements are!
All fringe benefits must be handled correctly to minimize the chance for penalties and interest to be levied against your company or for triggering larger and more intrusive governmental audits.
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?
Learning Objectives:
For the attendee to learn and understand the 2017 requirements for taxation and reporting of fringe benefits:
- 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—what are the limits
- 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
- Prizes and Awards—Cash and Noncash
- Cell phones
- Gift certificates and gift cards
- Holiday gifts
- Meals, Clothing, Housing and Education Fringe Benefits
- The taxation pitfalls of company relocation and how to avoid them
- When can an employer pay for relocation
- What must be taxed when relocating an employee and what must only be reported
- 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
- Third Party Sick Pay
- What is third party sick pay
- When is the third party not the employer’s agent and when are they
- How does the status of the employer’s agent affect the taxation and reporting of third party sick pay
- When is third party sick pay taxable for income tax
- When is third party sick pay taxable for FICA and FUTA
- When is third party sick pay nontaxable
- Who reports the payments for third party sick pay for such forms as the 941 and W-2
- The latest version of IRS Third Party Sick Pay form
- What happens to the taxation if the employee pays a portion of the premium
Who Should Attend:
This webinar is highly advised for teams of:
- Payroll Professionals
- Human Resources
- Accounting Personnel
- Business Owners
- Lawmakers
- Attorneys, or any individual or entity that must deal with the complexities and technicalities of Year End procedures within the payroll process
