De Minimis Fringe Benefits Definition | Low-value Benefits

Payroll Definitions

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

De Minimis Fringe Benefits Definition

De minimis fringe benefits are benefits of low value that you infrequently give your employees.

De Minimis Fringe Benefits Extended Definition
The IRS has special rules for de minimis fringe benefits. Because you give this type of benefit infrequently and it has a small value, you do not have to include these benefits in employee wages. Also, neither you or your employees have to pay payroll taxes on these benefits. You might be able to deduct these benefits as business expenses.

Examples of possible de minimis fringe benefits include:

  • Parties
  • Small holiday gifts
  • Flowers
  • Company merchandise
  • Snacks

Related Articles

Digging Into De Minimis Fringe Benefits | Patriot Software

Tips for Handling Holiday Gifts to Employees | Patriot Software

De Minimis Fringe Benefits | IRS

Last Updated By

Maria Tanski-Phillips | Mar 01, 2023

Back to Top