Fringe Benefit Taxation (2021 Updates)

This session will place special emphasis on tax provisions related to disaster relief and special provisions under legislation providing relief during the COVID-19 pandemic.

From training and tuition to insurance coverage, meals and lodging, employer-provided benefits may be valuable perks for employees. There are a number of benefits that can be fully or partially excluded from taxable wages, but the rules for exclusion vary for different benefits and even for different taxes with regard to the same benefit. The rules are complex and can be confusing.

In addition, the tax reform provisions of the 2017 Jobs Creation and Tax Act (JCTA) changed the rules for a number of popular benefits. Some benefits which could previously be excluded from employee wages under prior law are now taxable and, for some benefits, the employer can no longer deduct some or all of the cost. This webinar covers the important changes tax reform brought to fringe benefits as well as provides an overview of common and some uncommon benefits and the rules governing them. It is important for employers to “get it right” with regard to whether benefits may be excluded from wages, and if they must be included, comply with federal and state wage and tax withholding, deposit, and reporting requirements.

Learning Objectives

• Fringe benefits under a national emergency declaration
• Benefits provisions under COVID-19 relief legislation
• Fringe benefits that may be excluded from employee wages and requirements for exclusion
• Fringe benefits for which employer expense deductions are limited
• Methods for determining the value of fringe benefits for tax purposes
• Including taxable fringe benefits in employee compensation: timing and methods
• Tax computation, withholding, deposit, and reporting requirements
• Cafeteria (Section 125) plans and Simple Cafeteria Plans
• Changes to fringe benefits taxation under the TCJA and the impact of those changes
• New rules for de minimis benefits and achievement awards
• Accountable expense reimbursement plans and why they may more important than ever

Why Should You Attend?

The COVID-19 pandemic and the declaration of a national emergency raises questions about the treatment of various fringe benefits. This includes reimbursement for work at home expenses, paid and unpaid leave, sick pay, dependent care costs, medical expenses, leave sharing arrangements, and disaster relief payments. This session will include an emphasis on benefits employers may provide to employees during a national disaster. 

Determination of the value of a fringe benefit to include in employee taxable wages can be a complex process. For some benefits, where the requirements are met, part or all of the value of the benefit may be excluded from wages. For non-cash benefits, special rules may apply when determining the value of the benefit for tax purposes. In addition, it is critical to know when to treat a benefit as provided to the employee so that the employer is compliant with tax withholding and deposit requirements. 

Who Should Attend

• Payroll Supervisors and Personnel
• HR Supervisors and Personnel
• Public Accountants
• Internal Auditors
• Tax Compliance Officers
• Enrolled Agents
• Employee Benefits Administrators
• Officers and Managers with Tax or Benefits Compliance Oversight
• Company / Business Owners
• Managers/ Supervisors
• Public Agency Managers
• Audit and Compliance Personnel / Risk Managers