Compliance Considerations for Fringe Benefits

Fringe benefits are forms of extra compensation provided by employers to employees in addition to their regular wages, such as cash, cash-equivalents, assistance programs or other non-monetary benefits. Under the Internal Revenue Code (IRC) Section 61, all income is considered taxable unless an exclusion applies, such as a designated ‘fringe benefit.’ Other additional benefits from employers that do not fall into the fringe benefit category by the IRC are addressed by statutory provisions providing special tax treatment (e.g., moving expenses or awards).

Although many employers wish to offer these types of additional benefits for employees, it can be challenging to navigate the tax implications and potential requirements for these plans. During this one-hour refresher, the Regulatory and Legislative Strategy Group will review considerations and address commonly asked questions related to benefits such as life and disability plans, commuter benefits and lifestyle spending accounts (LSAs). The team will also address funding arrangements for fringe benefits and the connection to COBRA regulations.

This program has been approved for 1.0 HRCI and SHRM credit.