Question

Name and describe 3 fringe benefits that the employer may provide to an employee tax free and what discrimination rules, if any, apply to those benefits. Be sure to specify the code sections that provide the income tax exclusion for the benefit

Answer 1

Con = New Microsoft Office Excel Worksheet - Microsoft Excel - 0 X Insert Page Layout Formulas Data Review View Home Cut = = = General - Calibri - 11 - A A BI UBA D Wrap Text Merge & Center - AutoSum 3 A Eg Copy Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Clear Sort & Find & Filter Select Editing Font Alignment Number Cells Paste Format Painter Clipboard A1 A B fic C D E K L M N O P Q R S T 1 2 Tax-free employee fringe benefits include: 3 4 Health benefits. Health benefits are by far the single most important 5 tax qualified employee fringe benefit. Health benefits include providing employees with 6 health, dental, and vision insurance, and paying for uninsured health-related expenses. 7 9 Gro Group term life insurance. A company may provide up to $50,000 in group term life 10 insurance to each employee tax free. If an employee is given more than $50,000 in 11 coverage, the employee must pay tax on the excess amount. However, this tax is paid at very favorable rates. 12 13 Educational assistance. Employers may pay employees up to $5,250 tax free each year for educational expenses such as tuition, fees, and books. 14 15 Disability insurance. If an employer pays disability insurance premiums for an employee 16 and the employee is the beneficiary), the premiums are excluded from the employee's 17 income. However, the employee must pay income tax on any disability benefits received 18 under the policy. There is an important exception, however: Disability payments for the loss of a bodily function or limb are tax free. Sheets Sheet4 Sheet1 Sheet2 Sheet3 Ready BO 100% 0 + 15:45 Type here to search o e Ô 9 o E ra 1» ENG 20.03.200 29-02-2020 6