Question

Any property or service that an ER provides to an EE on an infrequent or sporadic base, if the value of such property or service is so minimal that accounting for it would be unreasonable or administratively impractical, is considered:

A. Special accounting rule
B. Working condition fringe
C. De minimus fringe
D. Non-cash compensation

Answer 1

A de minimus fringe is any property or service provided by an employer (ER) to an employee (EE) on an infrequent or sporadic basis, with a minimal value that makes it impractical to account for.

Step-by-step explanation:

The correct answer is C. De minimus fringe.

A de minimus fringe is any property or service provided by an employer (ER) to an employee (EE) on an infrequent or sporadic basis, with a minimal value that makes it impractical to account for. These fringes are exempt from certain reporting and tax requirements.

Examples of de minimus fringes include occasional use of a company car or small non-cash gifts like coffee mugs or holiday turkeys.