Fringe benefits

[K2retire]

We have a client whose plan excludes fringe benefits from the definition of compensation under the 414(s) safe harbor alternative definition of compensation on an FT William document. Some of the things that the client believes are "fringe benefits" are not what I think is a fringe benefit. Neither the adoption agreement nor the base plan document defines fringe benefit. FT William says they can't give tax advice.

Treas. Reg. 1.414(s)1(c)(3) also mentions fringe benefits but fails to define that term.

Does anyone have a good reference that I can provide to my client?

[BG5150]

Does this help?

Publication 15-B (2017), Employer's Tax Guide to Fringe Benefits

 

[K2retire]

Perhaps I'm over thinking this. That gives good information about what benefits are taxable and how to calculate the tax. What I'm looking for is something that tells which of the taxable fringe benefits on that list can be excluded from plan compensation and still meet the 414(s) safe harbor.

[BG5150]

I would think all of them.  Neither the plan nor the regs say only some fringe benefits.

[ERISADC]

A client has just asked me whether the following are "fringe benefits" for purposes of the safe harbor exclusions:

PTO cashouts for unused sick days

PTO cashouts for unused vacation time

Neither a sick-day "plan" nor a vacation pay plan is listed in the IRS Publication (15-B) listing fringe benefits, cited by BG5150.  

DOL Regs. 2510.3-1(b)(3)(I) says that an unfunded vacation pay plan is not an ERISA welfare plan but merely  payroll practice.  It would  seems that a payroll practice isn't a fringe benefit; it's simply part of an employee's basic compensation. 

Seems like payment of cash in lieu of payment of one's regular for absence during a sick days meets the same standard.   

Does anyone argue, or does anyone know of guidance, suggesting are that either of these payouts is a fringe benefit for purposes of the safe harbor exclusions?