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Fringe Benefits

Employer-provided fringe benefits are exempt from tax if the tests are met. Certain fringe benefits can help defray some non-deductible costs. Fro instance. transit and parking passes can help off set the costs of commuting.

Highly compensated individuals may be taxed on certain benefits if nondiscrimination rules are not met.

The most common tax-free benefits are:

  • Accident and health plan coverage
  • Employer contributions to health savings accounts (HSA)
  • Group-term life insurance
  • Adoption benefit plans
  • Plans providing employees with discounts
  • Employer-subsidized meal facilities