Employers cannot discriminate between highly and non-highly compensated employees when providing taxable fringe benefits.

Question

Quizplus · Accepted Answer

Employers can discriminate between highly and non-highly compensated employees when providing taxable fringe benefits, as the tax implications are handled through the employees' income taxes. However, certain benefits are subject to nondiscrimination rules to qualify for tax-advantaged treatment.

Employers Cannot Discriminate Between Highly and Non-Highly Compensated Employees When