Fringe Benefits Tax Deduction
If you are ready to hire an employee or contractor, you may want to consider including various fringe benefits as part of their compensation package. Fringe benefits are non-cash compensation for services. Fringe benefits may be taxable or non-taxable so it is important you understand the proper treatment for various types of benefits to ensure you are in compliance with IRS regulations. Regardless of the tax status, fringe benefits offered for legitimate business purposes will generally be deductible on your Schedule C.