Compensation Question: Is This Fringe Benefits?

[PensionPro]

For those covered by the employer's health insurance, the employer pays the employee $600/month in cash. For those not covered by the employer's health insurance, the employer pays the employee $200/month in cash. The amount is reported on box 1 of W-2.

Would this be considered fringe benefits or regular compensation? Thanks!!!

[masteff]

Depends on where you get your definition of fringe benefit, but I could make the argument it is one. It's other than normal paid for services and it varies based on a factor unrelated to hours or services performed. It might not be one of the statutorily-listed fringe benefits but that's not an exclusive list as noted in one of the below threads.

http://benefitslink.com/boards/index.php?/topic/52556-fringe-benefit/

http://benefitslink.com/boards/index.php?/topic/51822-fringe-benefits-include-sick-pay/

[leevena]

I would agree with masteff. Here is a link to irs. www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf

Good luck.