Fringe Benefits: Compliance Considerations

Under the Internal Revenue Code (IRC), all compensation and benefits received by an employee from their employer are considered taxable unless an exclusion applies. Many employers are aware that health benefits, such as health insurance coverage, can be provided to employees on a non-taxable basis, but may not know that the IRS provides other avenues for employees to receive tax-exempt benefits in the form of “qualified fringe benefits.”

Fringe benefits are a category of compensation/benefits provided by employers to employees in addition to their regular wages. Examples of this may include assistance programs or other non-monetary benefits that in some cases qualify for favorable tax treatment under the IRC.
Although many employers wish to offer these types of additional benefits to employees, navigating the tax implications and potential requirements of these plans can be challenging.

During this one-hour refresher, the Regulatory and Legislative Strategy Group will review many considerations and address commonly asked questions related to some fringe benefits including life and disability plans, commuter benefits, lifestyle spending accounts (LSAs) and more. The team will also address funding arrangements for fringe benefits and their connection to ERISA and COBRA.