The IRS released a draft of the 2021 version of its guide to fringe benefits. This Publication 15-B provides information for employers on the employment tax treatment of fringe benefits.
A fringe benefit is a type of payment for the performance of services that are not actually “work” services. Fringe benefits are taxable and must be included in the recipients pay unless the law specifically excludes the expense.
Publication 15-B describes fringe benefits, discusses the exclusions that apply to certain fringe benefits and provides rules to determine the value of fringe benefits.
For 2021, the IRS identifies the following updates included in Publication 15-B:
A copy of the updated draft Publication 15-B may be accessed by clicking here.