The wide world of fringe benefits – New IRS guide highlights range of offerings

Description

Abstract: This past January, the IRS released its newly updated Fringe Benefit Guide. Although the guide is directed at federal, state and local government employers, it provides a helpful overview of how the agency defines fringe benefits as well as their tax treatment and reporting rules. So now may be a good time for employers to take a step back and review their company’s offerings. This article describes the various types of fringe benefits and four approaches to them that the IRS takes. A sidebar discusses when different kinds of employers might face penalties under the Affordable Care Act if they don’t provide adequate health insurance.