Basic Fringe Benefits 2025 - 4 CPE

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.

Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.

Course Level: Overview. This program is appropriate for professionals at all organizational levels.

Field of Study: Taxes

Prerequisite: General understanding of federal income taxation.

Advanced Preparation: None

Learning Assignments & Objectives

As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.

ASSIGNMENT

At the start of the materials, participants should identify the following topics for study:

* Benefit mechanics

* Employee achievement awards

* Group term life insurance

* Self-insured medical reimbursement plans

* Medical insurance

* Meals & lodging

* Cafeteria plans

* Employer-provided automobile

* Adoption assistance program

* Interest-free & below-market loans

Learning Objectives

After reading the materials, participants will be able to:

1. Recognize basic fringe benefit planning by determining “income” under §61, identify the unusual tax-favored compensation advantage of qualified fringe benefits, and determine the fair market value of a fringe benefit under the general valuation rule and the special two-month pour-over accounting rule.

2. Identify the rules for group term life insurance under §79 stating how to implement proper coverage and determine the mechanics of self-insured medical reimbursement plans under §105.

3. Identify the rules for excluding the value of meals and lodging under §119, and “cafeteria plans” and recognize the requirements and limits of employee educational assistance programs and dependent care assistance.

4. Identify “no-additional-cost services” and determine what property or services are excludable from income as qualified employee discounts under §132(c), and specify exceptions to working condition fringes and de minimis fringes.

5. Determine the requirements for qualified transportation fringe benefits under §132(f), specify valuation methods for employer-provided automobiles, and identify the requirements and benefits of adoption assistance programs.

6. Recognize the income inclusion of moving expense reimbursement and below market loans and identify ERISA compliance requirements.

After studying the materials, answer exam questions 1 to 23.

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