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Basically, it makes no difference how you get paid, cash, check, food, clothing, diamonds....anything of value. Fringe benefits, outside of certain limits (called "deminimus" for very minor things), and some very specified things, are considered salary. The value of that item is determined and taxed, just as if you had received it in cash. So, for example, if you employer provides you a car, or a house that isn't absolutely part of the job and you use it for your own use, it is a taxable fringe benefit. Generally, health insurance, life insurance under 50K, and a few others are NOT taxable, and almost everything else is.
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What is fringe benefit tax?
It is the taxation of most, but not all fringe benefits, which are generally no-cash employee benefit.
Are fringe benefits tax free for the employee?
The below information is for the employer and can be found by going to the IRS gov web site and using the search box for Publication 15-B (2010), Employer's Tax Guide to Fringe BenefitsAny fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Section 2 discusses the exclusions that apply to certain fringe benefits. Any benefit not excluded under the rules discussed in section 2 is taxable.Including taxable benefits in pay. You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. *.Any amount the law excludes from pay.*.Any amount the recipient paid for the benefit rules used to determine the value of a fringe benefit are discussed in section 3.If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. However, you can use special rules to withhold, deposit, and report the employment taxes. These rules are discussed in section 4.If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. However, you may have to report the benefit on one of the following information returns.Click on the below Related Link
Whether unrecognized tax benefits is a tax portion?
An unrecognized tax benefit is the difference between the tax benefit reflected on the income tax return and the amount of the benefit recorded on the financial statements. Example: taxpayer deducts $100 on its return but believes that a $60 deduction will be the most likely outcome in a negotiated resolution with the IRS on audit. The $40 difference is the unrecognized tax benefit.
Is a income tax benefit account a contra account of income tax expense?
The answer is no.A contra account to the "Income Tax Benefit (Deferred)" would be a "Income Tax Charge (Deferred)".
What is a tax trap?
A tax trap is a tax law provision that can result from a taxpayer's loss of an otherwise available tax benefit from a transaction.
What is fringe benefit tax?
It is the taxation of most, but not all fringe benefits, which are generally no-cash employee benefit.
How much tax is payable for a fringe benefit?
If the fringe benefit is taxable the amount will be added to all of your gross taxable income and taxed at your marginal tax rate. !000 X 10% = 100
Tax advantages of private limited company?
can someone spell out what fringe benefit tax is and how an accountant of a compnay should compute the same
Get texan brief fin pranab gave it the boot unscramble for three words?
fringe benefit tax
What are six ways that a government can earn revenue?
Income tax, consumption tax (gst/vat), harm tax (cigarettes, alcohol etc), tariffs, corporate tax, fringe benefit tax, Witholding tax, non-resident withholding tax!
Are fringe benefits tax free for the employee?
The below information is for the employer and can be found by going to the IRS gov web site and using the search box for Publication 15-B (2010), Employer's Tax Guide to Fringe BenefitsAny fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Section 2 discusses the exclusions that apply to certain fringe benefits. Any benefit not excluded under the rules discussed in section 2 is taxable.Including taxable benefits in pay. You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. *.Any amount the law excludes from pay.*.Any amount the recipient paid for the benefit rules used to determine the value of a fringe benefit are discussed in section 3.If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. However, you can use special rules to withhold, deposit, and report the employment taxes. These rules are discussed in section 4.If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. However, you may have to report the benefit on one of the following information returns.Click on the below Related Link
Is fringe benefit tax a direct tax?
Yes. Income tax is a direct tax. Individuals and businesses pay direct taxes to the government on a regular basis and it is calculated on all sources of income accrued by the business or individual.
What tax is paid by business?
Companies pays the below taxes to the Federal in US: 1. Corporate Tax 2. Capital gain Tax 3. Alternative Minimum Tax (AMT) 4. Branch Profit Tax 5. Sales Tax 6. Fringe Benefit Tax (FBT) 7. Local Taxes 8. Foreign Source income in US 9. Foreign tax relief
What is the tax benefit of a car donation?
Not everyone can get a tax benefit and if you do the amount can vary.
The governments benefit from a tax can be measured by?
tax revenue
Whether unrecognized tax benefits is a tax portion?
An unrecognized tax benefit is the difference between the tax benefit reflected on the income tax return and the amount of the benefit recorded on the financial statements. Example: taxpayer deducts $100 on its return but believes that a $60 deduction will be the most likely outcome in a negotiated resolution with the IRS on audit. The $40 difference is the unrecognized tax benefit.
Is a income tax benefit account a contra account of income tax expense?
The answer is no.A contra account to the "Income Tax Benefit (Deferred)" would be a "Income Tax Charge (Deferred)".
