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Special analysis: Fall is fringe-festival time

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in Office Management,Payroll Management

Forget Oktoberfest. Fall is when most companies assess their fringe benefits programs, with an eye to making changes for the coming year. It’s also when Payroll begins to assess the damage (taxes, that is) from the current year’s offerings. How to sort everything out? Here’s some help.

Morale boosters. Employees always appreciate a little recognition. Pizza lunches or coffee and doughnuts in the morning can take the edge off edgy times. But don’t go overboard. Coffee and doughnuts are tax-free de minimis benefits because they’re noncash and low value. It’s also difficult to determine who ate what, another characteristic of de minimis fringes.

The IRS has never put a dollar value on de minimis benefits, and neither should you. Other examples of tax-free de minimis fringes include reasonably priced occasional theater or sports tickets provided to employees on a nondiscriminatory basis, and merchandise of low value (e.g., a hol...(register to read more)

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