Question

Which of the following characteristics apply to taxable fringe benefits? (Check all that apply.)

* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.
* Employers treat the taxable fringe benefits the same as cash compensation.

Answer 1

The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.

Employers treat the taxable fringe benefits the same as cash compensation.

Employees are taxed on the value of the benefit, rather than the cost paid for the benefit.

Step-by-step explanation:

Answer 2

Employers treat the taxable fringe benefits the same as cash compensation.

Step-by-step explanation:

Taxable fringe benefits "are included in gross income and subject to federal withholding, social security, and Medicare taxes".

Fringe benefits are "perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts".

* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.

FALSE, the taxable fringe benefit is not deductible from the employer.

* Employers treat the taxable fringe benefits the same as cash compensation.

TRUE, and as we can see on the definition above the taxable fringe benefits are treated as a compensation that comapnies giv their employees.