Basic Fringe Benefits

Course Description:

  This course is an overview of basic fringe benefits and examines their mechanics, compensation methods, valuation, withholding, and accounting. Achievement awards, term life insurance, medical reimbursement, meals & lodging, educational assistance, dependent care, employer-provided automobiles, interest-free loans, etc. are identified. Employer and employee economic and tax considerations are recognized. Fringe benefit requirements and limits are specified and ERISA compliance requirements are determined. 

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Recognize basic fringe benefit planning by determining "income" under §61, and identify the differences between former non-statutory and current statutory fringe benefits created by recent cases, rulings, and tax law changes.
•     Specify the mechanics of typical fringe benefits, determine the fair market value of a fringe benefit under the general valuation rule or the special valuation rules, and identify the general accounting rule and the special two-month pour-over accounting rule.
•     Identify an "employee achievement award" under §274, and recognize the rules for group term life insurance under §79 noting how to implement proper coverage.
•     Determine the mechanics of self-insured medical reimbursement plans under §105, and specify the requirements of medical insurance under §106 noting differences.
•     Identify the rules for excluding the value or meals and lodging under §119, and "cafeteria plans" and how they operate.
• Recognize the requirements and limits of employee educational assistance programs and dependent care assistance noting how to obtain each type of assistance.
• Recognize planning services available under §132, 212, and 67, determine interest-free and below-market loans, identify child care benefits and corporate-funded educational savings accounts, specify S corporation fringe benefits, and identify ERISA compliance requirements.