Internal Revenue Code Section 132(a) provides eight types of fringe benefits that are excluded from gross income.
[3] If an employer pays for an employee's income tax return preparation, the expense does not qualify for a working condition fringe.
[11][12] While the Internal Revenue Service does not define infrequently, gifts to employees on a quarterly basis would not qualify as a de minimis fringe benefit.
[13] Examples of tax-free de minimis fringe benefits include occasional typing of personal letters by an employee of the employer; occasional personal use of the employer's copier as long as at least 85 percent of the copier's use is for business purposes; occasional parties for employees and their guests; gifts of property (not cash) with a low fair-market value for a birthday, holiday, performance, illness, or family crisis; occasional tickets to a theater or sporting event; coffee, doughnuts, and soft drinks for employees; and personal telephone calls made by employees.
[2][17] Provision of tax-free qualified transportation fringe benefits to employees on or after January 1, 2018 is not tax-deductible to the employer as an ordinary business expense.
[18] Per the Tax Cuts and Jobs Act of 2017, Tax-exempt employers must report tax-free qualified transportation fringe benefits provided to employees on or after January 1, 2018, as unrelated business income.
[2] Qualified Military Base Realignment and Closure Fringe is defined in Section 132(n) as one or more payments under Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966 to offset the adverse effects on housing values from military base realignment or closure.
[2] Other fringe benefits may be excluded from taxable income under other sections of the Internal Revenue Code.
[21] The award must be a tangible item, not cash or gift cards; must be given to employee as part of a meaningful presentation; and cannot seem to be disguised compensation.
[17] Section 79 excludes $50,000 worth of group term life insurance coverage provided by an employer to an employee.