This course overviews basic fringe benefits and examines their mechanics, compensation methods, valuation, withholding, and accounting. Achievement awards, term life insurance, medical reimbursement, meals & lodging, educational assistance, dependent care, employer-provided automobiles, interest-free loans, etc., are identified. Employer and employee economic and tax considerations are recognized. Fringe benefit requirements and limits are specified and ERISA compliance requirements are determined.
Learning Objectives
• Recognize basic fringe benefit planning by determining "income" under §61, and identify the differences between former non-statutory 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 stating how to implement proper coverage.
• Determine the mechanics of self-insured medical reimbursement plans under §105, and specify the medical insurance requirements under §106, identifying 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 assistance programs and dependent care assistance specifying 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 benefits under §132(f), specify valuation methods for employer-provided automobiles, identify the qualifications for the popular physical fitness exclusion, and the requirements and benefits of adoption assistance programs.
• Recognize planning services available under §§132, 212, and 67, determine interest-free and below-market loans, identify child care benefits and corporate-funded educational savings accounts, specify S corporation fringe benefits, and identify ERISA compliance requirements.
Major Topics
• Benefit mechanics
• Employee achievement awards
• Group term life insurance
• Self-insured medical reimbursement plans
• Medical insurance
• Meals and lodging
• Cafeteria plans
• Employer-provided automobile
• Adoption assistance program
• Interest-free and below-market loans
