Question

24) A "de minimis" fringe benefit is?

A. Discount offered employees that's not more than 20% of the price for services offered to customers 20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it

Answer 1

A "de minimis" fringe benefit is an item or service provided by an employer of such minor value that accounting for it is considered unreasonable. It includes things like occasional personal use of office equipment or small gifts.

Step-by-step explanation:

A "de minimis" fringe benefit refers to B. A service or an item of such small value as to make accounting for the benefit unreasonable. In the context of business and finance, a de minimis benefit is a benefit provided by an employer to an employee that is considered to be of such a minor value that accounting for it would be impractical or administratively cumbersome.

Examples of these benefits may include occasional personal use of office equipment, small gifts or tokens of appreciation, infrequent meals, and similar low-cost items or services. The Internal Revenue Service (IRS) in the United States provides guidance on what qualifies as a de minimis benefit, which helps employers understand the tax implications of providing such benefits to employees.