4.1. ERMUSR 05-12-2009 - Laserfiche WebLink

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• Unmarked vehicles used by law enforcement officers paid the expenses. The education must meet at least one if the use is officially authorized. of the following tests. • An ambulance or hearse used for its specific pur- pose. • Any vehicle designed to carry cargo with a loaded gross vehicle weight over 14,000 pounds. • Delivery trucks with seating for the driver only, or the driver plus a folding jump seat. • A passenger bus with a capacity of at least 20 pas- sengers used for its specific purpose. • School buses. • Tractors and other special-purpose farm vehicles. • The education is required by the employer or by law for the employee to keep his or her present salary, status, or job. The required education must serve a bona fide business purpose of the employer. • The education maintains or improves skills needed in the job. However, even if the education meets one or both of the above tests, it is not qualifying education if it: Is needed to meet the minimum educational require- ments of the employee's present trade or business, or Pickup trucks. A pickup truck with a loaded gross vehi- cle weight of 14,000 pounds or less is a qualified nonper- sonal-use vehicle if it has been specially modified so it is not likely to be used more than minimally for personal purposes. For example, a pickup truck qualifies if it is clearly marked with permanently affixed decals, special painting, or other advertising associated with your trade, business, or function and meets either of the following requirements. 1. It is equipped with at least one of the fallowing items a. A hydraulic lift gate. b. Permanent tanks or drums. c. Permanent side boards or panels that materially raise the level of the sides of the truck bed. d. Other heavy equipment (such as an electric gen- erator, welder, boom, or crane used to tow auto- mobiles and other vehicles). 2. It is used primarily to transport a particular type of load (other than over the public highways) in a con- struction, manufacturing, processing, farming, min- ing, drilling, timbering, or other similar operation for which it was specially designed or significantly modi- fied. Vans. A van with a loaded gross vehicle weight of 14,000 pounds or less is a qualified nonpersonal-use vehi- cle if it has been specially modified so it is not likely to be used more than minimally for personal purposes. For ex- ample, avan qualifies if it is clearly marked with perma- nently affixed decals, special painting, or other advertising associated with your trade, business, or function and has a seat for the driver only (or the driver and one other person) and either of the following items. • Permanent shelving that fills most of the cargo area. • An open cargo area and the van always carries merchandise, material, or equipment used in your trade, business, or function. Education. Certain job-related education you provide to an employee may qualify for exclusion as a working condi- tion benefit. To qualify, the education must meet the same requirements that would apply for determining whether the employee could deduct the expenses had the employee • Is part of a program of study that will qualify the employee for a new trade or business. Outplacement services. An employee's use of outplace- ment services qualifies as a working condition benefit if you provide the services to the employee on the basis of need and you get a substantial business benefit from the services distinct from the benefit you would get from the payment of additional wages. Substantial business bene- fits include promoting a positive business image, maintain- ing employee morale, and avoiding wrongful termination suits. Outplacement services do not qualify as a working con- dition benefit if the employee can choose to receive cash or taxable benefits in place of the services. If you maintain a severance plan and permit employees to get outplace- ment services with reduced severance pay, include in the employee's wages the difference between the unreduced severance and the reduced severance payments. Exclusion from wages. You can generally exclude the value of a working condition benefit you provide to an employee from the employee's wages. Exception for independent contractors. You cannot exclude the value of parking (unless de minimis), transit passes (if their monthly value exceeds $115 per month), or the use of consumer goods you provide in a product testing program from the compensation you pay to an indepen- dent contractor who performs services for you. Exception for company directors. You cannot ex- clude the value of the use of consumer goods you provide in a product testing program from the compensation you pay to a director. 3. Fringe Benefit Valuation Rules This section discusses the rules you must use to determine the value of a fringe benefit you provide to an employee. You must determine the value of any benefit you cannot exclude under the ruses in section 2 or for which the amount you can exclude is limited. See Including taxable benefits in pay, on page 2. In most cases, you must use the general valuation rule to value a fringe benefit. However, you may be able to use Publication 15-B (2008) Page 19