Posted on February 16, 2006 at 16:51:06:
The best perks for company workers considered working condition fringe benefits are those that are deductible by the firm but do not add to the taxable income of the employee. The company does not have to pay employment taxes on these benefits, either.
This covers such items as business subscriptions, employee training, business travel, use of company cars for business, uniforms, professional-association dues and outplacement services. If the employee paid of these services himself, they would be deductible but limited by a 2-percent-of-AGI floor.
Sometimes meals and /or entertainment expenses can be covered if they are ordinary and necessary, and directly related to or associated with the active conduct of the business. For instance, a business meeting might be followed by lunch even at a country club with golf, swimming and such. Its most acceptable to the IRS if employees are required to attend and spouses are not invited.