Taxable or Exempt? Decoding the IRS’s View on Fringe Benefits

Now with more and more businesses using fringe benefits to compete for talent by keeping costs of doing business minimal, the Internal Revenue Service counters with more robust regulations to ensure compliance. It remains essential for payroll professionals and all employers to become aware of the tax implications of these benefits.

This webcast by payroll expert speaker Dayna J. Reum, CPP, FPC, will have a deep look into the regulatory position of fringe benefits by the IRS, focusing attention on:

Taxable vs. Non-taxable Benefits: What the IRS Considers Taxable vs. Non-taxable and How It Determines Which Fringe Benefits are Taxable vs. Exempt under the Code.

IRC Exceptions: What IRS Code Exception exists and How they are applied in Practice.

Compliance Concerns: Why Providing Non-Taxable Benefits Can Sometimes Make Them Taxable Depending on Delivery or Record Keeping.

Fair Market Value Calculation: Learn how to correctly determine and calculate the fair market value of fringe benefits for tax reporting purposes.

By attending this session, participants will leave with actionable insights and tools to navigate the complex landscape of fringe benefit taxation effectively and confidently.

Webinar Objectives

• IRS rules for taxation of Fringe Benefits
• How to calculate the value of a noncash fringe benefit
• Review of excludable fringe benefits and the 2025 limits
• Procedures for recording fringe benefits
• Year-end best practices for fringe benefit taxation and how to minimize those challenges in 2025.

Webinar Agenda

• Review FMV (Fair Market Value) and how the IRS determines it.
• Discussion on No additional cost services, employee discounts, working condition fringe benefits & De minimis Fringe Benefits.
• Review qualified transportation benefits for 2025
• Discuss several excludable fringe benefits such as Retirement planning, athletic facilities, achievement awards etc.
• Discuss fringe benefits that should be taxable
• Review Moving/Relocation Expenses
• Review executive taxation items, like spousal travel. Company aircraft usage etc.
• Once a benefit is determined taxable, how to handle it (Brief overview of how to handle any fringe benefits that AP pay.)
• Annual Fringe Benefit limits will be reviewed.

Who Should Attend

Payroll and Tax Professionals