Taxable Vs. Non-Taxable Fringe Benefits (Completed)

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Worker expense reimbursements are subject to IRS guidelines and can be disallowed as expenses – and even considered compensation to those employees – if not handled correctly. Further, if worker expense reimbursements do not meet IRS guidelines, they may be disallowed as expenses and considered compensation to those workers, leaving the employer responsible for the associated payroll taxes – plus any penalties.

Taxable and nontaxable fringe benefit are scattered throughout the Internal Revenue Code. Benefits can be hidden in Sec 274, 162, 119, 132, 127, and 82. Add in numerous Announcements, Notices and Regulations and we have a complex web. This course will concentrate on the development of an Accountable Reimbursement Plan under Sec 274 and accompanying regulations plus recent pronouncements and inflation increases.

Topics Covered

• IRS Focus: The Tax Gap
• What's New: Changes in Fringe benefits and associated 1099/W-2 reporting
• Overview of Meal expensing; including per diem
• Fringes and Reimbursements Issues
• Accountable Plans
• Fringe Benefit/Expense Reimbursement Record Keeping
• Transportation Reimbursed Expenses

Learning Objectives

• Identify taxable and non-taxable wages
• Identify what other benefits are nontaxable wages
• Identify what meals are deductible and nontaxable to employees
• Identify the difference between taxable and non-taxable wages
• Identify whether meal allowances are nontaxable
• Identify when travel allowances are nontaxable
• Identify other benefits that can be nontaxable wages

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None