Publication 15-B - Employer'S Tax Guide To Fringe Benefits - 2012 Page 23
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33•
A passenger bus with a capacity of at least 20 pas-
Education. Certain job-related education you provide to
sengers used for its specific purpose.
an employee may qualify for exclusion as a working condi-
tion benefit. To qualify, the education must meet the same
•
School buses.
requirements that would apply for determining whether the
•
Tractors and other special-purpose farm vehicles.
employee could deduct the expenses had the employee
paid the expenses. The education must meet at least one
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Bucket trucks, cement mixers, combines, cranes and
of the following tests.
derricks, dump trucks (including garbage trucks),
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flatbed trucks, forklifts, qualified moving vans, quali-
The education is required by the employer or by law
fied specialized utility repair trucks, and refrigerated
for the employee to keep his or her present salary,
trucks.
status, or job. The required education must serve a
bona fide business purpose of the employer.
See Regulations section 1.274-5(k) for the definition of
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qualified moving van and qualified specialized utility repair
The education maintains or improves skills needed
truck.
in the job.
Pickup trucks. A pickup truck with a loaded gross vehi-
However, even if the education meets one or both of the
cle weight of 14,000 pounds or less is a qualified nonper-
above tests, it is not qualifying education if it:
sonal-use vehicle if it has been specially modified so it is
•
not likely to be used more than minimally for personal
Is needed to meet the minimum educational require-
purposes. For example, a pickup truck qualifies if it is
ments of the employee’s present trade or business,
clearly marked with permanently affixed decals, special
or
painting, or other advertising associated with your trade,
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Is part of a program of study that will qualify the
business, or function and meets either of the following
employee for a new trade or business.
requirements.
1. It is equipped with at least one of the following items.
Outplacement services. An employee’s use of outplace-
ment services qualifies as a working condition benefit if
a. A hydraulic lift gate.
you provide the services to the employee on the basis of
b. Permanent tanks or drums.
need, you get a substantial business benefit from the
services distinct from the benefit you would get from the
c. Permanent side boards or panels that materially
payment of additional wages, and the employee is seeking
raise the level of the sides of the truck bed.
employment in the same trade or business of the em-
d. Other heavy equipment (such as an electric gen-
ployer. Substantial business benefits include promoting a
erator, welder, boom, or crane used to tow auto-
positive business image, maintaining employee morale,
mobiles and other vehicles).
and avoiding wrongful termination suits.
Outplacement services do not qualify as a working con-
2. It is used primarily to transport a particular type of
dition benefit if the employee can choose to receive cash
load (other than over the public highways) in a con-
or taxable benefits in place of the services. If you maintain
struction, manufacturing, processing, farming, min-
a severance plan and permit employees to get outplace-
ing, drilling, timbering, or other similar operation for
ment services with reduced severance pay, include in the
which it was specially designed or significantly modi-
employee’s wages the difference between the unreduced
fied.
severance and the reduced severance payments.
Exclusion from wages. You can generally exclude the
Vans. A van with a loaded gross vehicle weight of
14,000 pounds or less is a qualified nonpersonal-use vehi-
value of a working condition benefit you provide to an
cle if it has been specially modified so it is not likely to be
employee from the employee’s wages.
used more than minimally for personal purposes. For ex-
Exception for independent contractors. You cannot
ample, a van qualifies if it is clearly marked with perma-
exclude the value of parking (unless de minimis), transit
nently affixed decals, special painting, or other advertising
passes (if their monthly value exceeds $125 per month), or
associated with your trade, business, or function and has a
the use of consumer goods you provide in a product testing
seat for the driver only (or the driver and one other person)
program from the compensation you pay to an indepen-
and either of the following items.
dent contractor who performs services for you.
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Permanent shelving that fills most of the cargo area.
Exception for company directors. You cannot ex-
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An open cargo area and the van always carries
clude the value of the use of consumer goods you provide
merchandise, material, or equipment used in your
in a product testing program from the compensation you
trade, business, or function.
pay to a director.
Publication 15-B (2012)
Page 23
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