Question

An employee may exclude up to a 40 percent employer-provided discount on services received by the employee.?

Answer 1

An employee may exclude up to a 40 percent employer-provided discount on services received by the employee.

Step-by-step explanation:

An employee may exclude up to a 40 percent employer-provided discount on services received by the employee. This means that if the employee receives a service with a regular price of $100, they can exclude $40 from the taxable income. For example, if the employee received a haircut service with a regular price of $100 and they are eligible for the 40 percent discount, they only have to include $60 as taxable income.