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Income Tax Planning
Chapter 5: Gross Income from Employment/OTHER EMPLOYEE FRINGE BENEFITS (2 OF 9)
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Chapter Study Session

Chapter 5: Gross Income from Employment

OTHER EMPLOYEE FRINGE BENEFITS (2 OF 9)

01.Core Concepts

Qualified Employee Discounts • Excluded from income if: • Products: no more than cost of goods • Services: no more than 20% • If plan is discriminatory, HCEs must recognize discount. Working Condition Fringe Benefits • Employee would have been entitled to a deduction if paid personally.