Hi I'm Jeff Lovell a staff accountant with a a accounting and today we're discussing employee fringe benefits one of the many advantages to incorporating your business fringe benefits through services provided by our through an employer to an employee or an independent contractor or their family members they're generally taxable and reported on the employees w-2 or the contractors 1099 miscellaneous however the ones we're going to discuss today are tax exempt within limits on the screen are some of the most common non-taxable fringe benefits however today I'm only going to discuss a handful of these we're going to discuss employer provided meals health savings account contributions cell phones and vehicles employees are not required to report in their income the value of meals provided to them by their employer if the meals are of a de minimis nature such as coffee and donuts in the morning meals to incentivize employees to work overtime or fluid provided at a company picnic or party to qualify as tax exempt the meals generally must be provided on the company's premises such as in a cafeteria or break room at a company event or job site meals provided off-site like at a restaurant or after work hours or that are not made available to all employees equally are taxable the amount a corporation can deduct for contributions made to an employee's health savings account or HSA varies depending on the employees age and the type of planet in which they're enrolled for 2023 the contribution limits range from three thousand three hundred and fifty dollars on the low end to seven thousand seven hundred and fifty dollars not only can the corporation deduct these contributions but the employees pay no tax either since the contributions are not treated as income to...
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Are davis bacon fringe benefits taxable Form: What You Should Know
Davis Bacon “prevailing wage”; or they can choose to offer fringe benefits that are subject to payment as cash wages. You may be able to get a small bonus (and possibly more) if you opt for a cash-wage-based fringe benefit plan, depending on what the particular benefit plan offers. It's possible to make a “bonus” if you don't make full up-front payments if you choose an option that is not available under your employer plans, but the bonus payment will be capped at the “prevailing wage” if you choose a cash wage. For example: For your payment rate choice, make sure to choose the same or next highest payment rate based on other wages you receive. If you receive only the minimum wage, choose the next highest payment rate. If you don't make a full-up-front payment, your payment will be based on the prevailing wage determined in your payment rate choice. Your payment rates choice should be based on a plan that allows you to keep up with the prevailing wages in your locality. This could include the federal or state minimum wage and/or the Fair Labor Standards Act's standard wage rules. Paying by cash will not generally give you the protections of the Davis Bacon Act if you pay for other fringe benefits (as you would in an individual health plan). In fact, under the Davis-Bacon Act, if you pay for health benefits as a cash wage, you will be allowed to keep the full benefit you would have received under a cash wage in the Davis-Bacon Act. What happens if my employer doesn't offer fringe benefits to me? You're entitled to a benefit plan that's as good as the benefits of any plan offered by the employer. If the benefit plan offered by your employer doesn't provide the same level of benefit as the benefit plan offered by another eligible employer, the other employer has a duty under the Davis Bacon Act to match the benefit plan offered by your employer. The employer doesn't have to offer the same benefit that you are eligible for, or better benefits. Your job may depend on the work you do, your location, the type and quality of your coverage, and other factors that are specific to your position. For example, a driver for a small and small-sized employer who is in a low-risk occupation may need only to make up to 70% of the maximum payment rate to be eligible for a fringe benefit plan.
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