Offering Benefits: How Generous Can You Be?

Once employers get outside the standard temptations of medical/dental/vision, they need to be careful that additional benefits are not actually taxable compensation.

Benefits that include programs for weight loss, smoking cessation, etc., may qualify as a true non-taxable benefit if the employees have been medically diagnosed. However, there have been instances where the IRS has ruled that employer-provided memberships ARE taxable. 

If you are thinking about offering a benefit to help all those smart, young folks you're hiring pay off their student loans, you might want to think again. That would not be a benefit, it would be  considered taxable compensation.  However, if you want to pay for someone’s education expenses while they are your employee, that WOULD indeed be a nontaxable benefit.

Maybe your company has suffered a security breach and you need to provide Identity Theft Protection to your employees as a result of your misfortune...the Identity Theft Protection is NOT a taxable benefit to your employees!  

For more information view the IRS Employer's Tax Guide To Fringe Benefits

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Director of Human Resources and Operations Lisa Fontaine, Integrated Rehabilitation Services

You really know your stuff and take the time to explain all aspects of the system, even things that we may not be using right now.