Publication 15-B - Employer'S Tax Guide To Fringe Benefits - 2012 Page 2
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33employee’s income as a working condition fringe benefit.
Comments and suggestions. We welcome your com-
ments about this publication and your suggestions for
Personal use of an employer-provided cell phone, pro-
future editions.
vided primarily for noncompensatory business reasons, is
You can write to us at the following address:
excludable from an employee’s income as a de minimis
fringe benefit. For details, see
Employer-Provided Cell
Phones,
De Minimis (Minimal)
Benefits, and
Working Con-
Internal Revenue Service
dition
Benefits, in section 2.
Business Forms and Publications Branch
SE:W:CAR:MP:T:B
Cents-per-mile rule. The business mileage rate for 2012
1111 Constitution Ave. NW, IR-6526
is 55.5 cents per mile. You may use this rate to reimburse
Washington, DC 20224
an employee for business use of a personal vehicle, and
under certain conditions, you may use the rate under the
We respond to many letters by telephone. Therefore, it
cents-per-mile rule to value the personal use of a vehicle
would be helpful if you would include your daytime phone
you provide to an employee. See
Cents-Per-Mile Rule
in
number, including the area code, in your correspondence.
section 3.
You can email us at taxforms@irs.gov. Please put “Pub-
lication 15-B” on the subject line. Although we cannot
Qualified parking exclusion and commuter transporta-
respond individually to each email, we do appreciate your
tion benefit. For 2012, the monthly exclusion for qualified
feedback and will consider your comments as we revise
parking is $240 and the monthly exclusion for commuter
our tax products.
highway vehicle transportation and transit passes is $125.
See
Qualified Transportation Benefits
in section 2.
1. Fringe Benefit Overview
Reminders
A fringe benefit is a form of pay for the performance of
services. For example, you provide an employee with a
fringe benefit when you allow the employee to use a
Expiration of benefits for volunteer firefighters and
business vehicle to commute to and from work.
emergency medical responders. The gross income ex-
clusion for benefits provided to volunteer firefighters and
Performance of services. A person who performs serv-
emergency medical responders expired on December 31,
ices for you does not have to be your employee. A person
2010.
may perform services for you as an independent contrac-
tor, partner, or director. Also, for fringe benefit purposes,
Simple cafeteria plans. The Patient Protection and Af-
treat a person who agrees not to perform services (such as
fordable Care Act amended code section 125 to allow
under a covenant not to compete) as performing services.
eligible employers’ cafeteria plans to qualify as simple
Provider of benefit. You are the provider of a fringe
cafeteria plans. Simple cafeteria plans as described in
benefit if it is provided for services performed for you. You
section 1 will be treated as meeting certain nondiscrimina-
are the provider of a fringe benefit even if your client or
tion requirements.
customer provides the benefit to your employee for serv-
ices the employee performs for you. For example, you are
Photographs of missing children. The Internal Reve-
the provider of a fringe benefit for day care even if the day
nue Service is a proud partner with the National Center for
care is provided by a third party.
Missing and Exploited Children. Photographs of missing
children selected by the Center may appear in this publica-
Recipient of benefit. The person who performs services
tion on pages that would otherwise be blank. You can help
for you is the recipient of a fringe benefit provided for those
bring these children home by looking at the photographs
services. That person may be the recipient even if the
and calling 1-800-THE-LOST (1-800-843-5678) if you rec-
benefit is provided to someone who did not perform serv-
ognize a child.
ices for you. For example, your employee may be the
recipient of a fringe benefit you provide to a member of the
employee’s family.
Introduction
Are Fringe Benefits Taxable?
This publication supplements Publication 15 (Circular E),
Employer’s Tax Guide, and Publication 15-A, Employer’s
Any fringe benefit you provide is taxable and must be
Supplemental Tax Guide. It contains information for em-
included in the recipient’s pay unless the law specifically
ployers on the employment tax treatment of fringe benefits.
excludes it. Section 2 discusses the exclusions that apply
Page 2
Publication 15-B (2012)
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