Basic Fringe Benefits
Field of Study:
This course provides comprehensive definitions of the basic fringe benefits provided by the employers to their employees. It explains the tax laws applicable to these benefits. When and how these benefits affect the tax liabilities of the employees are also addressed in the course. Deductibility of the benefit is covered with reference to applicable tax laws. Finally, the course provides some tax planning for the fringe benefits.
After completing this course, you should be able to:
- Recognize basic fringe benefit planning by determining “income” under §61, and identify the differences between former nonstatutory and current statutory fringe benefits created by recent cases, rulings, and tax law changes.
- Specify the mechanics of typical fringe benefits, determine the fair market value of a fringe benefit under the general valuation rule or the special valuation rules, and identify the general accounting rule and the special two-month pour-over accounting rule.
- Identify an “employee achievement award” under §274, and recognize the rules for group term life insurance under §79 noting how to implement proper coverage.
- Determine the mechanics of self-insured medical reimbursement plans under §105, and specify the requirements of medical insurance under §106 noting differences.
- Identify the rules for excluding the value of meals and lodging under §119, and “cafeteria plans” and how they operate.
- Recognize the requirements and limits of employee educational as-sistance programs and dependent care assistance noting how to obtain each type of assistance.
- Identify “no-additional-cost services” and determine what property or services are excludable from income as qualified employee discounts under §132(c), and specify exceptions to working condition fringes and de minimis fringes.
- Determine the requirements for qualified transportation fringe ben-efits under §132(f), specify valuation methods for employer-provided automobiles and, identify the qualifications for the popular physical fitness exclusion, and the requirements and benefits of adoption assis-tance programs.
- Recognize planning services available under §§132, 212 and 67, de-termine interest-free and below-market loans, identify child care bene-fits and corporate funded educational savings accounts, specify S cor-poration fringe benefits, and identify ERISA compliance requirements.
Recommended CPE credits:
General understanding of federal income taxation.
Type of delivery method:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org