Fringe benefits are an integral part of an
employee's compensation package, and they help employers recruit and
retain high quality employees in today's highly competitive business
environment. But the diversity of available fringe benefits can make the
area of payroll compliance positively overwhelming. When determining
what fringe benefits to provide, the first question that usually arises
is "how are we going to do it?" However, your task doesn't stop once
that question is answered and the fringe benefit is provided. When
providing fringe benefits, the payroll department must have the answers
to a number of questions: Are fringe benefits taxable or not? Are they
reportable or not? You must understand what the IRS taxation and
reporting requirements are.
In this fringe benefits boot camp, payroll specialist Vicki M. Lambert, CPP,
will cover all of the common and not-so-common fringe benefits that
employers may offer, while specifically examining them from a payroll
perspective. Vicki will provide answers to important questions,
including: When is relocation taxable and reportable, and when is it
only reportable? What limits must be met to determine taxation of
educational assistance? Does one handle the personal use of a company
vehicle the same way as the business use of a personal vehicle? And of
course, she will be doing the math calculations where required.
But benefits can also seem like an alphabetical and numerical hodgepodge
at times. What is the difference between an HSA and an HRA? How should a
401(k), a 125 and a 129 plan be handled? What exactly is a Section 132
fringe benefit, and is it taxable?
All of these types of questions must be answered correctly in order for
payroll to keep the company in compliance: With both the IRS and the
state tax authorities taking aim at fringe benefits in their audits,
especially for executives, now is not the time to be complacent in your
compliance. Vicki's boot camp is broken up into five sections to cover
like fringe benefits together.