A 401(k)/PS plan excludes fringe benefits from compensation in the adoption agreement. Employer mentioned that some of the wages reported for employees includes cash in lieu of electing the employer's health insurance (they are covered by spouses' plans). Amounts vary, but are up to $9,000. Deferrals have been withheld from these amounts.
My review of the IRS website and EOB indicate that any pay other than basic compensation for the job (one's salary) is considered a fringe benefit, though I haven't found anything specific for this cash in lieu of insurance. Does anyone have anything specific regarding these types of payments as a fringe benefit?
thank you.