Harry is a CPA employed as a manager by a regional accounting firm. The firm pays Harry's dues to professional organizations and $175 monthly for his personal parking place at the office. Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.

Question

Harry is a CPA employed as a manager by a regional accounting firm. The firm pays Harry's dues to professional organizations and $175 monthly for his personal parking place at the office. Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.
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Quizplus · Accepted Answer

Both statements are correct. The payment of professional dues and the parking place benefit are considered working condition fringe benefits because they are provided for the convenience of the employer and necessary for the employee to perform their job. Additionally, the fact that only managers and partners receive these benefits does not affect their excludability for Harry since the discrimination is based on job position, not personal characteristics. Therefore, Harry can exclude the value of these benefits from his income.

Harry Is a CPA Employed as a Manager by a Regional