Article — Fringe Benefits

Thanks for sharing this!

Has your employer given you a gift card, cash or tickets to the theater? These perks, known as fringe benefits, may be extra compensation that’s taxable to you.

Stack of Money

Image source: Wikimedia Commons

Generally, your employer must include the dollar amount of fringe benefits such as gift cards or cash, in your gross income. The benefits are subject to social security, Medicare, and federal and state income tax withholding, unless there’s a specific exclusion.

What’s excluded? Small or “de minimis” fringe benefits are typically not taxable when the amount is insignificant and the benefit is infrequently given. The occasional bouquet of flowers or box of donuts are examples. Another specifically excluded, tax-free-to-you perk is a cell phone provided by your employer for business use.

Some fringe benefits do not fall neatly into either category. For example, tickets to the theater or to sporting events are not taxable when given occasionally, or when of minimal value. Season tickets, on the other hand, might be taxable to you.

***

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: ftc.gov Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: IRS.gov Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,