A fringe benefit is a form of pay from an employer that is in addition to regular wages for the performance of services. Under section 61 of the Internal Revenue Code, all income is taxable unless an exclusion from income applies.
Publication 5137 helps government entities understand the proper tax treatment of employee fringe benefits, which may or may not be subject to an exclusion from income. The publication addresses how to determine if certain benefits are taxable, how to compute the tax on the value of the benefit, rules for withholding taxes, and how to report the value of fringe benefits on Form W-2 of Form 1099-MISC.
A copy of the publication may be accessed by clicking here.