• Detail out the IRS rules around when taxes are due on Fringe Benefits
For other fringe benefits
that are typically tax-free to employees, there is generally equivalent treatment for 2% shareholders, partners and LLC members.
The following are not excludable as de minimis fringe benefits
provided to MTTPSEs are treated as follows for tax purposes:
The table clearly shows differentials among the groups of workers with regard to fringe benefits
. In 2005, employers in the traditional technological industries paid a total of NIS 1.5 billion for fringe benefits
for their workers, a sum that amounted to 15.9% of the total salary in that category.
In addition, special rules apply for certain categories of de minimis fringe benefits
, including group term life insurance on the lives of dependents, employer-operated eating facilities, and public transit passes (or reimbursements) for independent contractors.
With the enactment of the Deficit Reduction Act of 1984 (DRA 1984), (1) Congress at last addressed the federal income taxation treatment of nonstatutory fringe benefits
, (2) an area that had been shaped by administrative pronouncements of the Internal Revenue Service (Service) (3) punctuated by judicial oversight.
These contributions also appear to be taxable fringe benefits
subject to section 3402(a) income tax withholding, and wages subject to Social Security and Medicare taxes.
"You need to understand where there are the greatest potential for problems--especially where there are clear rules." Three areas that need special attention, he says, involve: Section 162(m) of the IRS code, which covers deductions for compensation in excess of $1 million; loans to executives; and fringe benefits
ERIC Descriptors: Charter Schools; School Policy; Funding Formulas; Fringe Benefits
; Educational Finance; Budgets; State Legislation
* The average German worker is paid 26.36 euros per hour, of which 44% is fringe benefits
Observation: This Chief Counsel Advice rationale also may apply to other situations where an S corporation provides taxable, properly valued fringe benefits