George's cafeteria plan allows him to select fringe benefits equal to 10 percent of his annual salary of $75,000.Which of the following would be taxable if selected?

Question

Quizplus · Accepted Answer

Country club memberships are considered a personal expense and are not related to employment. Therefore, they are not excludable from income as a fringe benefit under IRS rules, making them taxable to the employee. Health insurance premiums and childcare under a dependent care program are generally excludable from income, and discounts on company products are typically not taxable as long as they do not exceed the gross profit percentage on the products.

George's Cafeteria Plan Allows Him to Select Fringe Benefits Equal