The IRS views vacation time, accident plans and assistance for education, dependent care and adoption as employee benefits. Other forms of traditional benefits commonly featured in employee benefit packages include relocation assistance, legal aid and discounts for merchandise or admission to theme parks and resorts. Non-traditional benefits give employers another way to reward staff. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Fitness facilities, cafeterias and dry-cleaning service can give a company a competitive edge for attracting top talent. The IRS classifies property and services that employers provide to help employees do their jobs as working condition benefits. These represent business-related items that an employee could claim as unreimbursed employee expenses on his federal income tax if he, not the company, paid for them. Employee benefits represent an important recruiting, retention and employee engagement tool for businesses. Parking privileges, time off for volunteer work, casual dress codes and flexible schedules, for example, represent potential employee morale boosters. The U. S.
Noting that the tax code uses the terms fringe benefits and employee benefits to represent remuneration paid to employees in addition to their salary and wages. Most employees associate the word benefits with paid time off, health insurance and retirement plans such as 401(k)s. Annual company picnics, non-cash holiday gifts, use of photocopying machines, tickets to sporting events and personal use of a company-provided cellphone represent common de minimis benefits. Neither do benefits such as club or gym dues and the use of a company boat or home. Zacks Research is Reported On: Zacks Investment Researchis an A+ Rated BBBAccredited Business. Copyright Telecommuting and on-site daycare promote work-life balance, which translates into job satisfaction and productivity. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above. NYSE and AMEX data is at least 20 minutes delayed.
This employee-appreciation oriented benefit takes many forms. Examples of working condition benefits include use of a company car, subscriptions to business magazines, laptops, business trip expenses and training seminars. One category of benefits employers and employees find attractive is the de minimis, or minimal, benefit. The IRS defines this as property or a service whose minimal value makes recordkeeping impractical. Department of Labor classifies fringe benefits as contributions an employer pays to a third party or trustee for pension, life insurance and health insurance plans. They include non-wage compensation given for what the Internal Revenue Service calls performance of services.
Use of cash equivalents such as gift and credit cards as well as cash -- excluding meal money or taxi fare given once in a while -- do not fall under the de minimus category. Zacks Investment ResearchAt the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. In its January 2012 Taxable Fringe Benefit Guide, the IRS calls benefits that are eligible for special tax treatment fringe benefits, Since 1986 it has nearly tripled the S P 500 with an average gain of +26% per year. NASDAQ data is at least 15 minutes delayed. Zacks Finance Fringe benefits research papers.