Fringe Benefits
You can reap tax benefits and minimize costs by knowing how fringe benefits are treated under the tax code. The basic rule is this: Fringe benefits are taxable compensation. But there are exceptions in the Internal Revenue Code to encourage businesses and individuals to do things that lawmakers deem to be good public policy.
As a result, some fringe benefits are exempt from tax, if certain rules are satisfied. Other benefits are tax deferred, with no income tax due until a later date. Or they are taxed at lower rates, such as capital gains […]
