Publication 15b |
2000 Tax Year |
De Minimis (Minimal) Benefits
You can exclude the value of a de minimis benefit you provide to an
employee from the employee's wages. A de minimis benefit is any
property or service you provide to an employee that has so little
value (taking into account how frequently you provide similar benefits
to your employees) that accounting for it would be unreasonable or
administratively impracticable. Cash, no matter how little, is never
excludable as a de minimis benefit, except for occasional meal money
or transportation fare.
Examples of de minimis benefits include the following.
- Copying machine use.
Occasional personal use of a
company copying machine, if you sufficiently control its use so that
at least 85% of its use is for business purposes, is a de minimis
benefit.
- Holiday gifts.
Holiday gifts, other than cash,
with a low fair market value are de minimis benefits.
- Life insurance on spouse or dependent.
Group-term life
insurance payable on the death of an employee's spouse or dependent is
a de minimis benefit if the face amount is not more than
$2,000.
- Meals. De minimis meals are discussed under
Meals, later.
- Parties and picnics.
Occasional parties or picnics for
employees and their guests are de minimis benefits.
- Tickets for entertainment or sporting events.
Occasional tickets for entertainment or sporting
events are de minimis benefits.
- Transportation fare. De minimis transportation
fare is discussed under Transportation (Commuting) Benefits,
later.
- Typing.
Occasional typing of personal letters by a
company secretary is a de minimis benefit.
Employee.
For this exclusion, treat any recipient of a de minimis benefit as
an employee.
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