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Table 2-1. Special Rules for Various Types of Fringe Benefits <br />(For more information, see the full discussion in this section.) <br />Treatment Under Employment Taxes <br />Type of Fringe Benefit Income Tax Withholding Social Security and Medicare Federal Unemployment (FUTA) <br /> Exempt'•2, except for long-term Exempt, except for certain Exempt <br />Accident and health benefits care benefits provided through a payments to S corporation <br /> flexible spending or similar employees who are 2°ia <br /> arrangement. shareholders. <br />Achievement awards Exempt' up to $i ,600 for qualified plan awards ($400 for nonqualified awards}. <br />Adoption assistance Exempt'~3 Taxable Taxable <br /> Exempt if substantially all use during the calendar year is by employees, their spouses <br />and their <br />Athletic facilities , <br />dependent children and the facility is operated by the employer on premises owned or leased by the <br /> employer. <br />De minimis (minimal) benefits Exempt Exempt Exempt <br />Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). <br />Educational assistance Exempt up to $5,250 of benefits each year. (See Educational Assistance, later.) <br />Employee discounts Exempt3 up to certain limits. (See Employee Discounts, later.) <br />Employee stock options See Employee Stock Options, later. <br />Group-term life insurance Exempt Exempt'~4 up to cost of $50,000 Exempt <br />coverage of coverage. (Special rules apply <br /> to former employees.) <br />Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. (See Neaifh Savings Accounts, later.) <br />Lodging on your business Exempt' if furnished for your convenience as a condition of employment. <br />premises <br />i <br />i ! <br />Meats <br />Exempt if furnished on your business premises for your convenience. <br /> Exempt if de minimis. <br />Moving expense reimbursements Exempt' if expenses would be deductible if the employee had paid them. <br />No-additional-cost services Exempt3 Exempt3 Exempt3 <br />Retirement planning Exempts Exempts Exempts <br />services <br />:' <br />Transportation (commuting) ; Exempt' up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($115). or <br />qualified parking ($220). (See Transportation (Commuting) Benefits <br />later.) <br />benefits , <br /> <br /> Exempt if de minimis. <br />Tuition reduction Exempt3 if for undergraduate education {or graduate education if the employee performs teaching or <br /> research activities}. <br />Working condition benefits Exempt Exempt Exempt <br />j 'Exemption does not apply to S corporation employees who are 2°a shareholders. <br />I. ~ Exemption does not apply to certain highly compensated employees under aself-insured <br />lan that favors Th <br />l <br />p <br />ose emp <br />oyees. <br />I 'Exemption does not apply to certain highly compensated employees under a program that favors those employees. <br />° Exemption does not apply to certain key employees under a plan that favors those employees <br />. <br />- Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. <br />Publication 15-8 (2008) Page 5 <br />