Final answer:
Section 132 allows certain fringe benefits, like the use of employer-owned exercise equipment and vacant hotel rooms by employees, to be excluded from their gross income.
Step-by-step explanation:
The benefits covered by Section 132 that may be excluded from an employee's gross income include certain fringe benefits. For instance, an employee's use of employer-owned exercise equipment can generally be excluded from gross income as it qualifies as a fringe benefit, as long as it is on the employer's premises and used primarily by employees. Similarly, a hotel employee's use of a vacant hotel room may also be excluded from income, under the right circumstances, making it another type of qualified fringe benefit.
Other taxable and non-taxable forms of compensation under the tax code can include employee insurance, retirement plans, employer payments to Social Security, unemployment and worker's compensation insurance, medicare, and total compensation per hour. These are critical aspects of total compensation and have implications for both the employee's take-home pay and the employer's payroll expenses.