Olan Inc. provides an on-site day care center free of charge to employees who have pre-school children. Employees who enroll their children may exclude the value of this fringe benefit from gross income.

Question

Quizplus · Accepted Answer

This is a correct statement about the tax treatment of employer-provided child care facilities. The value of such a benefit can be excluded from an employee's gross income up to certain limits set by the IRS.

Olan Inc Provides an On-Site Day Care Center Free of Charge