Fringe Benefits for Contractors

Contractors often provide fringe benefits to attract and retain top talent and reward key employees and owners. From time to time, our clients request guidance on fringe benefits that may provide tax benefits and/or incentives for owners and employees of closely held businesses such as:

  • Auto/trucks – personal and/or company owned or leased
  • Parking
  • Dues – professional, civic and club
  • Professional licenses and certifications
  • Health insurance, reimbursed medical costs
  • Retirement plans
  • Home offices
  • Home information technology costs
  • Cell phones
  • Travel, meals and entertainment
  • Group events
  • Professional fees assistance for tax planning and preparation and retirement planning
  • Life insurance – group and individual plans
  • Employment of family members
  • Deferred compensation plans
  • Awards – safety and length of service achievements
  • Death benefits
  • Education and training
  • Uniforms
  • Working condition fringes

Depending on your objectives, several factors need to be vetted. Taxability of benefits may vary depending on your entity structure and tax situation. As the new year begins, contractors may want to take a minute to give this some thought. Elliott Davis Decosimo can help you review opportunities that may appeal to your organization at your convenience, via email, phone or in person.

Understanding the unique needs of contractors, our professionals can help you plan for your tax responsibilities. Contact Jim Hazel at Jim.Hazel@elliottdavis.com or Travis Bogan at Travis.Bogan@elliottdavis.com if you have questions.