Taxable and nontaxable fringe benefits

The Internal Revenue Service (IRS) has guidelines and laws for the way fringe benefits have to be taxed. First, an introduction to fringe benefits: Anything that is in addition to a person’s regular salary may be termed a fringe benefit. It is usually linked to an employee’s performance. Some of the common types of fringe benefits include children’s education, vehicle for commuting to the workplace and back, health insurance, retirement benefits and many others.

The IRS taxes certain kinds of fringe benefits that come under designated categories, while some other kinds of fringe benefits are not taxed. Taxable and nontaxable fringe benefits are a major aspect of taxation laws in the US and have to be implemented in strict accordance with what is set out in the law. There is a long list of taxable and nontaxable fringe benefits.

A few examples of nontaxable fringe benefits

Stock options, employee discounts, savings that are made for retirement planning and other related benefits are part of nontaxable fringe benefits. Also, certain types of De Minimis benefits, depending on their value, need not be accounted for and filed under W-2.

A few examples of taxable fringe benefits

Other fringe benefits like accident benefit, vehicle that is provided from an employer and is for personal use, expenses incurred on vacation, and many other types of benefits are taxable and have to be accounted for and filed.

When declaring and filing these, the right method has to be followed. Filing for the said taxable and nontaxable fringe benefits has to be done under the appropriate head, following the right procedures. The right knowledge has to go into understanding what to consider as taxable fringe benefits and what to classify as nontaxable fringe benefits. Claiming the fair market value of taxable fringe benefits is of the essence in making the declaration of taxable and nontaxable fringe benefits.

Get to understand how to follow the right procedures for taxable and nontaxable fringe benefits

To gain a complete understanding of these aspects of the IRS, please enroll for a valuable webinar from Compliance4All, a leading provider of professional trainings for all the areas of regulatory compliance. This session will give a complete understanding of how to classify taxable and nontaxable fringe benefits.

At this important webinar, Greta Hicks, who is a former IRS Revenue Agent and Regional Training Coordinator, will be the speaker. She will take participants through all the important aspects of taxable and nontaxable fringe benefits that will help them understand how to get this right. To gain insights into how to get taxable and nontaxable fringe benefits right, please register for this webinar by logging on to http://www.compliance4all.com/control/w_product/~product_id=501196LIVE?Linkedin-SEO

Learn about the taxable and nontaxable fringe benefits to avoid penalties

This webinar is highly useful for those who have some confusion about taxable and nontaxable fringe benefits. Since there are many items that are classified under both taxable and nontaxable fringe benefits; clarity on each of these will go a long way in helping to understand the correct method of filing.

The learning from this webinar is important also because not only are the wrong expenses may disallowed by the IRS; filing under the wrong classification could result in penalties, too. Greta will offer complete clarity on benefits that can be hid in Sections 274, 162, 119, 132, 127, and 82. She will also give an understanding of numerous Announcements, Notices and Regulations, all of which have to be assiduously adhered to.

In addition, she discuss a few areas of taxable and nontaxable fringe benefits that offer scope for ambiguity, such as:

o  What are taxable and non-taxable as wages?

o  Are meal allowances nontaxable?

o  Are travel allowances nontaxable?

o  What other benefits are nontaxable wages?

o  What meals are 100% deductible and nontaxable to employees?

o  What meals are 80% deductible and nontaxable to employees?

o  What meals and entertainment are 50% deductible and nontaxable to employees?

At this session, Greta will cover the following areas:

o      Which benefits go on the w-2?

o      Do any benefits go on a 1099?

o      Fringe benefits you might be missing

o      Accountable employee reimbursement plan

o      What employee benefits are non-taxable to employees?

o      What/when expenditures are wages to employees?

Fringe Benefit Examples and How They Relate to W2 and 1099 preparation:

o      Accountable vs non-Accountable Expense Reimbursement Plans

o      Record keeping requirements of Sec. 274 & Accountable Plans

o      50%, 80%, and 100% Deductible Meals

o      De Minimis fringe benefits

o      No added cost benefits

o      Cash payments

o      Auto allowances

o      Company vehicles

o      Prizes, awards, gifts

https://www.hr360.com/Employee-Benefits/Fringe-Benefits/Introduction-to-Fringe-Benefits.aspx

https://www.paychex.com/articles/finance/taxable-vs-nontaxable-fringe-benefits

http://smallbusiness.chron.com/list-nontaxable-fringe-benefits-21172.html

http://www.moneycrashers.com/taxable-fringe-benefits-income/

https://justworks.com/blog/ins-outs-fringe-benefits-non-taxable

Understanding and handling payment issues

A financial organization, or an organization involved in any business for that matter, faces the prospect of receiving duplicate, fraudulent or late payments. These are the typical payment issues an organization is likely to face at some point of time in its business.

Payment issues are something almost no organization is likely to be free from. Duplicate invoice payments, just one of the payment issues an organization is likely to face, account for losses of something like $100 million over a three-year period just for medium sized organizations. The amount is likely to be several times higher for large companies and those in the public sector, which most likely deal with billions of dollars in transactions.

Payment issues have their implications

The consequence of payment issues, be they duplicate, fraudulent or late payments, is whopping. It is likely to lead to business losses, because late payments, for instance, hinder investment into other productive activities by businesses. Although there are a number of sources at which payment issues can happen; it usually takes an organization quite a while to detect any payment issue, which could be duplicate, fraudulent or late payments. It also takes herculean efforts at times to get to the bottom of the payment issues.

Payment issues can happen due to a number of reasons

There is any number of reasons for which payment issues could arise. Manual data entry and processing, possible overlooking of characters while entering Accounts Payable (AP) or by Automated Clearinghouses (ACH) processors, oversights by manual checks and overlapping or duplication of payments while making payments from varied sources are just some of the reasons for which payment issues can occur with businesses.

Although the Sarbanes Oxley (SOX) Act has put in a number of checks and balances into the payment aspect of corporations; there are still a good number of loopholes that need to be e plugged if payment issues have to be addressed. How do organizations, especially those in finance, mitigate payment issues? What steps do they need to take to understand the regulations set out by the SOX Act, or take their own measures to prevent payment issues arising out of duplicate, fraudulent or late payments?

Learn the aspects of payment issues at a learning session

All these will be addressed at a very valuable learning session on this topic. The webinar, being organized by Compliance4All, a leading provider of professional trainings for all the areas of regulatory compliance, will have Ray Graber as speaker.

Ray is a senior BFSI professional who brings a deep and thorough understanding of banking, technology, and finance. To hear from him on how to understand and address payment issues such as duplicate, fraudulent or late payments; just register for this webinar by logging on to http://www.compliance4all.com/control/w_product/~product_id=501138?Wordpress-SEO

Insights for understanding payment issues

At this webinar, Ray will help participants understand how to foresee payments issues and strategize solutions. He will offer suggestions about how to put risk management plans in place to do this. The suggestions Ray will offer at this webinar will help participants from banks and corporations to get a clearer understanding of each other’s concerns and constraints, and ways of addressing them.

This session will arm them with the tools necessary for accurately auditing their existent processes and limit the potential for fraud. He will teach them how to understand the settlement process, which is part of the banking business. In other words, attending this session will equip participants with the insight needed for understanding payment issues and tackle them in relation to duplicate, fraudulent or late payments.

At this session, Ray will cover the following areas:

o  Payment System Risk Policy

o  FFIEC Action Summary for Retail Payments

o  Areas of Risk

o  Risk Assessment Activities

o  People, Processes, and Products

o  Is there an optimal organizational structure/for managing payments strategy?

o  Are there best practices that apply to my institution?

o  What are the hurdles in establishing an organization focused on the payments business?

o  Are there common pitfalls?

http://www.infor.com/content/whitepapers/detecting-prev-dup-invoice.pdf/

Analyzing financial statements is an indispensable insight for managers

Financial statements are the ultimate indicator of a company’s financial health. Number crunching is a very important exercise that all executives at all levels of an organization need to be familiar with. Yet, given the heavy jargon that goes into financial statements and the complexity most of them have; many managers feel put off and don’t generally like to pore over financial statements.

The company’s financial statement is intended to provide insights into the most important aspect of the business –the financial one –to managers and executives at all levels and in all disciplines. Marketing, finance, HR, customer service, and sales need financial statements to get a grasp of and gain perspective of the financial health of the organization.

Financial statements are critical for helping understand the business

Despite financial statements being the surest indicator of the most important aspect of any business organization –Finance –most managers lack the perceptiveness needed to understand and analyze the meaning of numbers. It is often that they devote some much time to running their business that the priority that needs to be accorded to understanding financial statements gets buried and takes a backseat.

A perceptive analysis of financial statements is the foundation to getting the business in order. Wading through the numbers helps the organization to dig into the market trends, understand where they are getting it right or wrong, and then use financial statements to draw proper conclusions and take appropriate action. It is important to understand financial statements for another critical reason: The competition should not understand our financial statements faster and better than we do!

Trend and ration analysis of financial statements

But how does one make sense of heaps and heaps of seemingly unintelligible numbers? Numbers in themselves, without the necessary nous to decipher them, make little sense to any executive. A few techniques do exist to help understand the meaning of numbers. An effective model for assessing the financial condition and results of operations of any business is that of using trend and ratio analysis. Getting a grasp of this model will empower financial and other executive teams to derive the maximum benefit that accrues from a crystal clear understanding of financial statements.

Imparting this understanding is the intent of a webinar that is being organized by Compliance4All, a leading provider of professional trainings for all areas of regulatory compliance. Miles Hutchinson, an experienced CGMA and business adviser, will be the speaker at this session.

In easily comprehensible terms, he will explain how participants can imbibe the sagacity needed to quickly and thoroughly analyze the financial condition and results of operations of any publicly traded company. All that is needed to gain this highly useful understanding of financial statements is to register for this webinar by logging on to

http://www.compliance4all.com/control/w_product/~product_id=501197LIVE?wordpress-SEO

Attending this highly useful session on financial statements gives Financial Executives, HR Managers, Accounting Managers, Department Managers, and Business Unit Managers the ability to discern numbers and help understand where these numbers lead the organization to.

These are the areas this webinar on financial statements will cover:

o  Review the components of the annual report of a prominent publicly traded company and learn how to use this wealth of information

o  Use the annual report to perform a fundamental financial analysis

o  Learn the various types of financial analysis and their purpose

o  Learn the key ratios to evaluate a company’s liquidity, leverage and operating performance

o  Identify the key benchmarks to help determine whether a company’s ratios are in line with competitors

o  Understand horizontal and vertical analysis and how they can be used to identify key trends

o  Bonus: receive our advanced excel hosted financial model complete with all ratios, horizontal and vertical analysis

o  Use our model to perform financial analysis on other company financial statements, including yours

o  Receive benchmark information to use in determining the quality of your analyses

Learn about resources available to perform comparative studies between companies in the same economic sector – even private companies.