Basic Fringe Benefits 2022 ON DEMAND

Overview

This course overviews basic fringe benefits and examines their mechanics, compensation methods, valuation, withholding, and accounting. Achievement awards, term life insurance, medical reimbursement, meals and 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.

Highlights

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.

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Recognize basic fringe benefit planning by determining “income” under Section 61. 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 medical insurance requirements 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). Determine the requirements for qualified transportation fringe benefits under Section 132(f). Recognize planning services available under Section 132, 212, and 67.