Question

Which of the following fringe benefits is taxable to the employee receiving the benefit? a. A small discount on toys granted to the salesperson for a toy store b. Incidental use of the company's copier by an office worker c. A subscription to a tax journal provided by the employer to a corporation's tax accountant d. A 15 percent discount on investment real estate granted to the employee of a real estate developer e. All of the above are tax-free

Answer 1

E. All of the above are tax free

Step-by-step explanation:

Fringe benefits are forms of compensation you provide to employees outside of a stated wage or salary. Common examples of fringe benefits include medical and dental insurance, use of a company car, housing allowance, educational assistance, vacation pay, sick pay, meals and employee discounts.

All the fringe benefits listed in the question above are not taxable.

Hence the best answer is E. All of the above are tax free

Answer 2

Answer: E. All of the above are tax -free.

Step-by-step explanation:

Fringe Benefits are the added compensations provided by an employer of labor to serve as motivation for employees. Fringe Benefits can be taxable or not. Tax -

Free fringe benefits are those removed from the employee's income. Some of them are; Achievement Awards, Athletic Facilities, De Minimis Benefits, Employee discounts, No -additional - cost services, Working condition benefit, etc.

In the list of options provided,

1. A small discount on toys granted for a salesperson for a toy store falls under employee discount which is a tax - free.

2. Incidental use of the company's copier by an office worker is a No -

additional - cost service which is equally tax - free.

3. A subscription to a tax journal provided by the employer to a corporation's tax accountant is needed for his job to progress effectively. It is a working condition benefit which is tax - free.

4. A 15% discount on investment real estate granted to the employee of a real estate developer is also an employee discount which is tax - free.