Fringe Benefit Taxation in 2022 – Taxing and Reporting

Overview

The IRS is auditing employers more and more each day and an area of most non-compliance. Most non-compliance occurs in regard to handling Fringe Benefits. Plus employers are offering more Fringe benefits versus cash compensation because it is a cost savings to employers. 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.  

Companies are providing more fringe benefits to employers more than ever before, thus reduces company cost but raises employee morale. Because of this, the IRS has more to say on what Fringe Benefits are taxable and what are not. The IRS for non-taxable fringe benefits puts a lot of regulation around how the fringe benefit is given and when that also determines if a thought non- taxable item may end up being taxable.

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

Areas Covered in this Training –

-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
-Discuss a number of 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.

Why Attend this Training:

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.

By attending this webinar, participants with walk away with a better understanding of the IRS view on fringe benefits taxation. The details of the IRC exceptions allowed by the IRS will be detailed and explained to participants. Also, participants will be able to better identify and calculate the fair market value of fringe benefits for taxation purposes.

Duration: 60 Minutes
Suggested Attendees:

-Payroll Supervisors and Personnel
-HR Supervisors and Personnel
-Public Accountants
-Internal Auditors
-Tax Compliance Officers
-Employee Benefits Administrators
-Officers and Managers with Tax or Benefits Compliance Oversight
-Company / Business Owners
-Managers/ Supervisors
-Public Agency Managers
-Audit and Compliance Personnel / Risk Managers
 

You may ask your Question directly to our expert during the Q&A session.