Chapter 3
Fringe Benefits
3.1 Tax-Free Health and Accident Coverage Under Employer Plans
3.2 Health Savings Accounts (HSAs) and Archer MSAs
3.3 Reimbursements and Other Tax-Free Payments From Employer Health and Accident Plans
3.4 Group-Term Life Insurance Premiums
3.7 Education Assistance Plans
3.8 Company Cars, Parking, and Transit Passes
3.9 Working Condition Fringe Benefits
3.10 De Minimis Fringe Benefits
3.11 Employer-Provided Retirement Advice
3.12 Employee Achievement Awards
3.13 Employer-Furnished Meals or Lodging
3.14 Minister's Rental or Housing Allowance
3.15 Cafeteria Plans Provide Choice of Benefits
3.16 Flexible Spending Arrangements
Employer-furnished fringe benefits are exempt from tax if the tests discussed in this chapter are met.
The most common tax-free benefits are accident and health plan coverage, including employer contributions to health savings accounts (HSAs), group-term life insurance plans, dependent care plans, education assistance plans, tuition reduction plans, adoption benefit plans, cafeteria plans, and plans providing employees with discounts, no-additional-cost services, or employer-subsidized meal facilities.
Highly compensated individuals may be taxed on certain benefits from such plans if nondiscrimination rules are not met.
Table 3-1 Are Your Fringe Benefits Tax Free?
| Fringe benefit— ... |
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