Question

which of the following employees fringe benefits are taxable?

- tara received statutory stock options and she made an election within 30 days of the date the stock is substantially invested.

- keanu was presented a voucher for an all expense paid vacation in a company wide meeting.

- Ruth received a laptop bag from his employer in a ceremony celebrating his five years with the company.

Answer 1

Answers are option A, B

A. Tara received statutory stock options and she made an election within 30 days of the date the stock is substantially invested.

B. Keanu was presented a voucher for an all expense paid vacation in a company wide meeting.

Fringe benefit refers to the pay given to employees other than money for the performing services. All fringe benefits are taxable unless if any is excluded by the law. The bag is given to the employee for his association with the company and not for performance. thus, that will not be taxable.