In this 11-minute video our speaker, Ann Dorsey, CPA, CGMA, CITP, MCSE, MSBS, provides a list of tax-exempt fringe benefits which are subject to certain conditions. Most fringe benefits that are income tax-exempt are also exempt from Social Security, Medicare and Federal Unemployment taxes, but not all. She also discusses fringe benefits that are taxable. The value of the benefits in the following examples is
generally taxable: cash bonuses or gifts - when you award employees with cash (or gift certificates, or similar items easily exchanged for cash) you must report the value of such gifts as extra salary or wages, regardless of the amount involved; prizes in the form or goods or services - if you award prizes or bonuses in the form of goods or services (e.g., a vacation trip for meeting sales goals), you must report the fair market value of the goods or services in the employee’s income. Ms. Dorsey also provides details on fringe benefit penalties.
Ann Dorsey, CPA, CGMA, CITP, MCSE, MSBS is the owner of Dorsey & Company CPA’s, PLLC - www.dorseyandcompany.com. She is also the owner of Rock City Data Group, Inc. (Microsoft® Gold Certified Partner) – www.rockcitydata.com and owner of The Payroll Place. Ms. Dorsey is a CPA, and a member of AICPA and ASCPA and has served on various committees.
Runtime: 11 minutes
More Program Information
