This self-study course offers a detailed exploration of fringe benefits, an essential area in tax and accounting practices. Designed for professionals, it covers the fundamental aspects of fringe benefits including their mechanics, compensation methods, and valuation. You'll learn about a variety of fringe benefits such as term life insurance, medical reimbursement, meals and lodging, educational assistance, and more. The course helps you understand the economic and tax considerations from both employer and employee perspectives. It also provides guidelines on fringe benefit requirements, limits, and ERISA compliance. By the end of this course, you'll have a robust understanding of fringe benefits, equipping you with the knowledge to advise clients effectively, navigate tax implications, and ensure compliance in this crucial area of finance.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Recognize basic fringe benefit planning by determining "income" under Section 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 Section 274, and recognize the rules for group term life insurance under Section 79 stating how to implement proper coverage.
Determine the mechanics of self-insured medical reimbursement plans under Section 105, and specify the requirements of medical insurance under Section 106 identifying differences.
Identify the rules for excluding the value of meals and lodging under Section 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 Section 132(c), and specify exceptions to working condition fringes and de minimis fringes.
Determine the requirements for qualified transportation fringe benefits under Section 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 assistance programs.
Recognize planning services available under Section Section 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
Basic Fringe Benefits
Fringe Benefit Plans for S Corporations
ERISA Compliance
