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Is there a definite definition of fringe benefit? Plan excludes fringe benefits from compensation. Employees earn a "trip award" based on their performance. TPA has excluded from compensation, accountant is questioning.

How do we determine if this is a fringe benefit or just a bonus?

Thank you.

Kate Smith

Kate Smith

Posted
Is there a definite definition of fringe benefit?

No, it's a broad term. The Code addresses certain fringe benefits that either are or are not taxable to the employee but it's not an exclusive list of what constitutes one. See page 6 of this document: http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf (EDIT: opps, it's the 5th physical page, but is numbered 6 at the bottom)

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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