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PRDV204: Payroll Applications

Unit 6: Benefits: Fringe Benefits, Recognition, and Market Value  

According to investopedia.com, fringe benefits are a collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are met.  Any employee who receives taxable fringe benefits will have to include the fair market value of the benefits in their taxable income for the year, which will be subject to tax withholdings and Social Security benefits payments.  These benefits could include, but are not limited to, tuition reimbursement, personal use of company vehicles, or childcare assistance.  This unit will provide you with some foundational insight on some of the fringe benefits.

Unit 6 Time Advisory
This unit should take you approximately 3 hours to complete.

☐    Subunit 6.1: 28 minutes

☐    Subunit 6.2: 120 minutes

☐    Subunit 6.3: 25 minutes

Unit6 Learning Outcomes
Upon successful completion of this unit, the student will be able to:
- Explain fringe benefits and be able to compute any associated payroll calculations.

6.1 Understanding Fringe Benefits   6.1.1 Why Offer Fringe Benefits   - Reading: Entrepreneur.com’s "The Basics of Employee Benefits" Link: Entrepreneur.com’s "The Basics of Employee Benefits" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on why it is a good practice to offer employee benefits.  And while there are some benefits offered to employees that are required by law, many benefits employees are used to receiving are actually considered discretionary, or voluntary. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 25 minutes to complete.

6.1.2 The Pros and Cons of Offering Benefits   - Reading: FindLaw.com’s "Pros and Cons: Offering Employee Benefits" Link: FindLaw.com’s "Pros and Cons: Offering Employee Benefits" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on the positive and negative aspects of offering employee benefits.  Ultimately, a business has to be very aware of the associated cost of employee benefits, as it directly impacts the organization’s bottom line. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 3 minutes to complete.

6.2 The IRS and Fringe Benefits   - Reading: IRS.gov’s "Publication 15-B - Fringe Benefit" Link: IRS.gov’s "Publication 15-B - Fringe Benefit" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will be provided with detailed information on understanding fringe benefits.  You will receive an overview, and an explanation of exclusion and valuation rules, as well as rules for withholding, depositing, and reporting.   
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 120 minutes to complete.    

6.3 Walk The Plank   - Assessment: Dwmbeancounter.com: Dave Marshall’s "Walk The Plank" Link: Dwmbeancounter.com: Dave Marshall’s "Walk The Plank" (Flash)
 
Instructions: To review this part of the course click on the link above.  This assessment is not graded.  You should view this assessment as a review of content that you should have learned up to this point.  After answering each question you will receive a “correct” or “incorrect” notification.  You are greatly encouraged to take notes as you work through this assessment.  The goal in completing this assessment is to answer enough questions correctly to make the pirate walk the plank.  
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This assessment should take you approximately 25 minutes to complete.