As a general rule, any economic benefit granted an employee by his or her employer and intended to compensate the employee for services rendered represents gross income to the employee.

Question

Quizplus · Accepted Answer

This is known as the general taxability rule for compensation and benefits. Any form of payment, whether in cash or non-cash, is considered as compensation for services rendered and is therefore considered as gross income to the employee for tax purposes.

As a General Rule, Any Economic Benefit Granted an Employee