Go Back   CDN Business Directory > Main Category > Taxes

 
 
Thread Tools Display Modes
  #5  
Old 08-01-2006, 08:59 PM
Seth Breidbart
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Steve Pope <spope33[at]speedymail.org> wrote:

- quote -

> What about Google's seven on-site restaurants serving three
> meals a day,


Serving meals "for the convenience of the employer" (e.g. to
keep the employees at their desks instead of going out) is a
non-taxable benefit.

Seth

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #4  
Old 08-01-2006, 08:59 PM
Arthur Kamlet
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Steve Pope <spope33[at]speedymail.org> wrote:
- quote -

> Arthur Kamlet <ArtKamlet[at]aol.REMOVE.com> wrote:
> > Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:


> > > .....


> > See the De Minimis discussion of company provided picnics and
> > parties for employees and their guests in IRS Pub 15B. The
> > exact valuation is not specified and therefore leaves room
> > for interpretation of de minimus.


> What about Google's seven on-site restaurants serving three
> meals a day, company limos to take the employees to and from
> work, etc.? Still "de minimus"?


On-site restaurants the employee has to eat in, and which is
for the convenience of the employer, is not taxable.

See Pub 525 and Pub 15B, which cover this income.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #3  
Old 08-01-2006, 04:22 AM
Steve Pope
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Arthur Kamlet <ArtKamlet[at]aol.REMOVE.com> wrote:
- quote -

> Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:

> > The company that a relative of mine works for has a pretty
> > impressive summer outing each year. For example, this year's
> > summer outing:
> > * Was for all employees and their families.
> > * Was a weekend in Bretton Woods, with people being
> > put up at the Mount Washington Hotel, the Bretton Arms,
> > the Bretton Woods Lodge, the Bretton Woods Townhouses,
> > and down the road at Attitash.
> > * The company paid for:
> > - Two nights (Fri, Sat) stay for employees and family
> > members.
> > - Hors d'ouvres and open bar, and band on Friday night.
> > - Breakfast Saturday morning.
> > - Boxed lunches for Saturday.
> > - Hors d'ouvres, fancy buffet supper, open bar, and DJ on
> > Saturday night.
> > - Breakfast Sunday morning.


> > The market value of this is easily over $500 per employee
> > (especially when an employee has a spouse and N kids). Yet
> > it never shows up on the employees' W-2 forms at tax time.
> > How does (can) this company get away with given its
> > employees something of that significant a value without it
> > having to be treated as wages to the employees? We're not
> > talking about de minimis fringe like a coffee mug or a $30
> > clock for being with the company for five years.


> See the De Minimis discussion of company provided picnics and
> parties for employees and their guests in IRS Pub 15B. The
> exact valuation is not specified and therefore leaves room
> for interpretation of de minimus.


What about Google's seven on-site restaurants serving three
meals a day, company limos to take the employees to and from
work, etc.? Still "de minimus"?

Steve

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #2  
Old 08-01-2006, 04:02 AM
Rich Carreiro
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Victor Roberts <xxx[at]lighting-research.com> writes:
- quote -

> Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:

> > The company that a relative of mine works for has a pretty
> > impressive summer outing each year. For example, this year's
> > summer outing:
> > * Was for all employees and their families.
> > * Was a weekend in Bretton Woods, with people being
> > put up at the Mount Washington Hotel, the Bretton Arms,
> > the Bretton Woods Lodge, the Bretton Woods Townhouses,
> > and down the road at Attitash.


[snip]

- quote -

> Did the company hold any meetings with the employees?

No, it doesn't. There are no meetings and employees (and
their families) are completely free to do whatever they want
during the weekend.

The company *has* pulled the "start with a required meeting"
trick on a recent employees-only trip to Disneyland, though.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 07-30-2006, 07:14 PM
Arthur Kamlet
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:

- quote -

> The company that a relative of mine works for has a pretty
> impressive summer outing each year. For example, this year's
> summer outing:
> * Was for all employees and their families.
> * Was a weekend in Bretton Woods, with people being
> put up at the Mount Washington Hotel, the Bretton Arms,
> the Bretton Woods Lodge, the Bretton Woods Townhouses,
> and down the road at Attitash.
> * The company paid for:
> - Two nights (Fri, Sat) stay for employees and family
> members.
> - Hors d'ouvres and open bar, and band on Friday night.
> - Breakfast Saturday morning.
> - Boxed lunches for Saturday.
> - Hors d'ouvres, fancy buffet supper, open bar, and DJ on
> Saturday night.
> - Breakfast Sunday morning.
> The market value of this is easily over $500 per employee
> (especially when an employee has a spouse and N kids). Yet
> it never shows up on the employees' W-2 forms at tax time.
> How does (can) this company get away with given its
> employees something of that significant a value without it
> having to be treated as wages to the employees? We're not
> talking about de minimis fringe like a coffee mug or a $30
> clock for being with the company for five years.


Sae the De Minimis discussion of company provided picnics and
parties for employees and their guests in IRS Pub 15B. The
exact valuation is not specified and therefore leaves room
for interpretation of de minimus.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 07-30-2006, 06:28 PM
Victor Roberts
Guest
 
Posts: n/a
Default Re: Why isn't fancy employer-paid weekend not taxable wages?

Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:

- quote -

> The company that a relative of mine works for has a pretty
> impressive summer outing each year. For example, this year's
> summer outing:
> * Was for all employees and their families.
> * Was a weekend in Bretton Woods, with people being
> put up at the Mount Washington Hotel, the Bretton Arms,
> the Bretton Woods Lodge, the Bretton Woods Townhouses,
> and down the road at Attitash.
> * The company paid for:
> - Two nights (Fri, Sat) stay for employees and family
> members.
> - Hors d'ouvres and open bar, and band on Friday night.
> - Breakfast Saturday morning.
> - Boxed lunches for Saturday.
> - Hors d'ouvres, fancy buffet supper, open bar, and DJ on
> Saturday night.
> - Breakfast Sunday morning.
> The market value of this is easily over $500 per employee
> (especially when an employee has a spouse and N kids). Yet
> it never shows up on the employees' W-2 forms at tax time.
> How does (can) this company get away with given its
> employees something of that significant a value without it
> having to be treated as wages to the employees? We're not
> talking about de minimis fringe like a coffee mug or a $30
> clock for being with the company for five years.


Did the company hold any meetings with the employees? Years
ago when I worked for a large corporation they held a
"meeting" at a resort in Florida for employees and their
spouse. We had one or two short meetings over two days and
the rest of the time was open. I know they paid for my
plane ticket and believe they also paid for my wife's
ticket, in addition to the room at the resort and those
meals that were held with the group. There was an
expectation that we would get to know the other employees
and their spouses better. I believe the company considered
this a "team building" meeting instead of an outright gift,
but the rules for such things may have changed over the
years. (One thing is certain, that the financial climate
has changed and I believe that meetings like this are now
far less common.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 07-30-2006, 11:17 AM
Rich Carreiro
Guest
 
Posts: n/a
Default Why isn't fancy employer-paid weekend not taxable wages?

The company that a relative of mine works for has a pretty
impressive summer outing each year. For example, this year's
summer outing:
* Was for all employees and their families.
* Was a weekend in Bretton Woods, with people being
put up at the Mount Washington Hotel, the Bretton Arms,
the Bretton Woods Lodge, the Bretton Woods Townhouses,
and down the road at Attitash.
* The company paid for:
- Two nights (Fri, Sat) stay for employees and family
members.
- Hors d'ouvres and open bar, and band on Friday night.
- Breakfast Saturday morning.
- Boxed lunches for Saturday.
- Hors d'ouvres, fancy buffet supper, open bar, and DJ on
Saturday night.
- Breakfast Sunday morning.

The market value of this is easily over $500 per employee
(especially when an employee has a spouse and N kids). Yet
it never shows up on the employees' W-2 forms at tax time.
How does (can) this company get away with given its
employees something of that significant a value without it
having to be treated as wages to the employees? We're not
talking about de minimis fringe like a coffee mug or a $30
clock for being with the company for five years.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

Tags
employerpaid, fancy, taxable, wages, weekend
Similar Threads
Thread Forum Replies Last Post
Re: Small % of S corp profit paid as wages - problematic?
Katie: Lance Mannion wrote: > I noticed on a past return that I only paid 15k as a W2 > wage, and 90k on Schedule E for my S corp. I know this > does...
Taxes 7 05-06-2005 06:15 PM
Re: Small % of S corp profit paid as wages - problematic?
Lance Mannion: I noticed on a past return that I only paid 15k as a W2 wage, and 90k on Schedule E for my S corp. I know this does not meet the "reasonableness"...
Taxes 6 05-06-2005 05:37 PM
Re: Small % of S corp profit paid as wages - problematic?
Bill Brown: Lance Mannion wrote: > I noticed on a past return that I only paid 15k as a W2 > wage, and 90k on Schedule E for my S corp. I know this > does...
Taxes 1 05-02-2005 05:15 AM
Wages paid to your minor child. (Exemption of Soc. Sec. taxes )
BigAl: I've read in several newsletters over the years that wages paid to your minor children that are living with you are exempt from social security...
Taxes 3 11-14-2003 03:01 PM



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

All times are GMT. The time now is 01:51 PM.