Publication 15b |
2000 Tax Year |
Chapter 1 Fringe Benefit Overview
A fringe benefit is a form of pay for the performance of services
given by the provider of the benefit to the recipient of the benefit.
For example, you provide an employee a fringe benefit when you allow
the employee to use a business vehicle to commute to and from work.
Performance of services.
A person who performs services for you does not have to be your
employee. A person may perform services for you as an independent
contractor, partner, or director. Also, for fringe benefit purposes,
treat a person who agrees not to perform services (such as under a
covenant not to compete) as performing services.
Provider of benefit.
You are the provider of a fringe benefit if it is provided for
services performed for you. You may be the provider of the benefit
even if it was provided by another person. For example, you are the
provider of a fringe benefit your client or customer provides to your
employee for services the employee performs for you.
Recipient of benefit.
The person who performs services for you is the recipient of a
fringe benefit provided for those services. That person may be the
recipient even if the benefit is provided to someone who did not
perform services for you. For example, your employee may be the
recipient of a fringe benefit you provide to a member of the
employee's family.
Are Fringe Benefits Taxable?
Cafeteria Plans
Previous| First | Next
Publication Index | IRS-Forms Main | Home
|