Taxable Vs. Non-Taxable Fringe Benefits (Completed)

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Employee expense reimbursements are subject to IRS guidelines and can be disallowed as expenses – and even considered compensation to those employees – if not handled correctly. Further, if employee expense reimbursements do not meet IRS guidelines, they may be disallowed as expenses and considered compensation to those employees, leaving the employer responsible for the associated payroll taxes – plus any penalties. Taxable and nontaxable fringe benefit are scattered throughout the Internal Revenue Code. Benefits can be hid in Sec 274, 162, 119, 132, 127, and 82. Add in numerous Announcements, Notices and Regulations and we have a complex web. This course will concentrate on the development of an Accountable Reimbursement Plan under Sec 274 and accompanying regulations plus recent pronouncements and inflation increases.

Topics Covered

• Accountable vs. non-Accountable Expense Reimbursement Plans
• Record keeping requirements of Sec. 274 & Accountable Plans
• Deductible and Non-deductible Meals
• De minimis fringe benefits
• No added cost benefits
• Cash payments
• Auto allowances
• Company vehicles
• Prizes, awards, gifts

Learning Objectives

• Learn what are the taxable and non-taxable wages?
• Learn what other benefits are nontaxable wages?
• Learn what meals are deductible and nontaxable to employees?
• Discover the difference between taxable and non-taxable wages
• Find out whether meal allowances are nontaxable
• Learn when travel allowances are nontaxable
• Discover other benefits that can be nontaxable wages

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None