Benefits received by employee from employer that are too small to reasonably or practically account for can be excluded from gross income as de minimis fringe benefits

De minimis fringe benefits are excluded from the employee's gross income.  A de minimis fringe benefit is any property or service the value of which is so small that accounting for it is unreasonable or administratively impractical.  Benefits that it would not be unreasonable or administratively impractical to account for or which are not excluded by other statutory provisions are taxable.  If the benefit does not qualify as a de minimis fringe because it is too valuable or it is provided too frequently, then no part of it is excluded.  However, if most of the value of a benefit is excludable, the balance may be excludable as a de minimis fringe benefit. De minimis fringe benefits other than meals in employer-provided eating facilities are not subject to nondiscrimination rules.

De minimis fringe benefits include:

l occasional typing of personal letters by a company secretary;

l occasional cocktail parties, group meals or picnics for employees or their guests;

l traditional birthday or holiday gifts of property with a low fair market value;

l occasional theater or sporting event tickets;

l coffee, doughnuts and soft drinks;

l local telephone calls; and

l flowers, fruit, books or similar property provided to employees under special circumstances

If you have any questions, please contact our office at (847) 247-0020.