14 Tax-Favored Fringe Benefits: Whats the Right Mix for Your Business?

▤ Summary

These add-ons enable employers to cast a wider net in the job market, helping them attract and retain top-quality workers. Employers also cant deduct qualified employee transportation fringe benefits, such as parking allowances, mass transit passes and van pooling. The tax law defines "achievement award" as an item of tangible personal property granted to an employee for either length of service or promoting safety. However, the value of personal use (other than "de minimis" use) must be included in the employees taxable income, based on special IRS computations. A company can provide tax-free payments of up to $5,250 for college or graduate school tuition, books, fees and supplies under an educational assistance plan.

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