Learn how your company's payroll department can ensure compliance with IRS and state taxation and audit requirements for all types of fringe benefits.
ringe benefits are an integral part of an employee's compensation package, and they help employers recruit and retain high quality employees in today's highly competitive business environment. But the diversity of available fringe benefits can make the area of payroll compliance positively overwhelming. When determining what fringe benefits to provide, the first question that usually arises is "how are we going to do it?" However, your task doesn't stop once that question is answered and the fringe benefit is provided. When providing fringe benefits, the payroll department must have the answers to a number of questions: Are fringe benefits taxable or not? Are they reportable or not? You must understand what the IRS taxation and reporting requirements are.
In this fringe benefits boot camp, payroll specialist Vicki M. Lambert, CPP, will cover all of the common and not-so-common fringe benefits that employers may offer, while specifically examining them from a payroll perspective. Vicki will provide answers to important questions, including: When is relocation taxable and reportable, and when is it only reportable? What limits must be met to determine taxation of educational assistance? Does one handle the personal use of a company vehicle the same way as the business use of a personal vehicle? And of course, she will be doing the math calculations where required.
But benefits can also seem like an alphabetical and numerical hodgepodge at times. What is the difference between an HSA and an HRA? How should a 401(k), a 125 and a 129 plan be handled? What exactly is a Section 132 fringe benefit, and is it taxable?
All of these types of questions must be answered correctly in order for payroll to keep the company in compliance: With both the IRS and the state taxing authorities taking aim at fringe benefits in their audits, especially for executives, now is not the time to be complacent in your compliance. Vicki's boot camp is broken up into five sections to cover like fringe benefits together.
- The Payroll Side of Qualified / Nonqualified Deferred Comp, Tax Deferred and Tax Preferred Benefits
- Health and Other Insurances
- Feeding, Housing and Educating Employees
- Transportation Fringe Benefits
- Section 132 and Beyond
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