Help me please!!!!!!!!

SMace

We are looking at reimbursing ee's for a portion of their health club memberships. We would do it quarterly with proof that they are utilizing the services. Is that money taxable?

Stephen

Don D

I just flagged down our CFO going down the hall and asked. He said it is taxable, technically, unless there is some way to claim that it is a business expense directly related to the business. I think his answer in 'accounting-speak' was yes.

NaeNae55

If you want to make it a tax-free benefit, you need to pay the health club directly.

Don, I think I would like to run into your CFO online somewhere. Does he know if there is a forum for accountants like this one for HR people? x:D

Parabeagle

[font size="1" color="#FF0000"]LAST EDITED ON 01-30-03 AT 05:21PM (CST)[/font][p]You mean you're actually seeking out an accountant? Voluntarily???? That's scary! I spend most of my time trying to avoid ours (and I'm surrounded by 'em!) I'll bet THAT's gotta be a lively forum! Pass the No-Doz, please. :-)

NaeNae55

I am one of those boring accountants, so I don't see a problem in talking to someone else all day about depreciation and amoritization.

By the way, I have a cartoon her in my office that was given to me years ago. It is of one man behind a desk holding up a piece of paper and another man facing him obviously roaring with laughter. The paper says 2+2 = 7. The caption reads, "Accountants just want to have fun." So true.

Parabeagle

Well, you're obviously a good sport, NaeNae. Thanks for not taking my jab seriously. Feel free to make fun of lawyers all you want in my presence, though. ;-)

SMace

Thanks to everyone for the imput. You confirmed what I thought.

Stephen

JEBtrois

Nae Nae, the healthcare financial managament association (HFMA) ([url]www.hfma.com[/url] i think)has a forum like this. However, it's not free...you have to be an HFMA member. It's not all healthcare specific, some of it is accounting in general. You will find that the forum is not quite as "open" as this one since accountants are, generally speaking, a "tighter" group. Ok folks, don't rake me over the coals here I know that was a statement regarding stereotyping and not ALL accountants, but in my experience lurking here HR folks are much more apt to share their problems than the business office folks are.

Duffy

Stephen,

Our external accountants advised me years ago that this sort of fringe benefit is taxable income to the employee. We do the same thing for our employees and we add the value to the W-2 form.

They did say that there is a de-minimus rule that if the reimbursment is less than $25.00 it is not taxable. That was a few years ago so the amount may have gone up.

It never was an issue in our caae since the reimbursements were always over that.

About the only time we could reduce the taxable benefit was if the employee could prove thatpart of the expense was used for business purposes (rare indeed).



Mike