This Week's LessonWeek of September 22
Our lesson this week examines the topic of "De Minimis" Fringe Benefits. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.
A church allows its employees to use their office computers for personal purposes during their lunch break and during nonworking hours, and also allows them to make local calls using the church's telephones. Does the church need to value these benefits and report them as taxable income to the employees?
Instructions Click on the correct answer for each of the following questions.
Churches frequently provide employees with benefits whose value is so minimal that it would be impractical to account for it. Such benefits include such items as occasional use of employer computers or telephones for personal use, or an occasional meal. The tax code calls these benefits "de minimis" fringe benefits, and specifies that employers are not required to value them and report them as additional taxable income to its employees. In this week's lesson, we look at de minimis fringe benefits.