Accounting Question (Fringe Benefits)

You are the Tax Director of a large public company. The CFO is very frugal and is looking for fringe benefits that will be viewed favorably and provide incentives to employees and executives, but perhaps not cost the company very much. A consultant has provided the CFO a list of the following possible employee fringe benefits, and has claimed that all the benefits are tax free to the employee and deductible to the company. (He does not have a degree from Kogod). Do you as Tax Director agree?

List of "Concierge" and Other Innovative Fringe Benefits:

1. 1 Times Pay Group Term Life Insurance with the ability to purchase up to 3 Times Pay

2. On-site gym

3. On-site daycare or emergency day care option

4. Paid sabbaticals

5. On-site beauty salon

6. Car cleaning

7. First class airfare on business trips

8. Free cell phones

9. Pet-friendly perks (1. pet medical insurance and 2. bring to dog to work day, etc.)

10. Fun and games - foosball and pool tables in break rooms

11. Treadmill desks

12. Free food (color coded for most to least nutritious) (Google)

13. Discounts on what you do or produce (goods 80% / services 50%)

14. Cash and in-king perks with FMV of $50 from corporate credit cards and travel operators

15. Free retirement seminars from professionals (retirement planners, wills and estate advice)

16. Pizza Fridays/Bagel Mondays

17. Movies - group movie outings or free passes

18. Employee Service Awards (274(j) plans) - for service and/or longevity

19. Employee awards - points toward an item in a catalog (e.g., I-Pad)

20. "Lucky Draw" - participate in company film-making and public relations materials

21. Company rock band

22. Food trucks on campus

23. Working sabbaticals at other company locations

24. Lactation consultant, nursing mom's rooms equipped with a refrigerator

25. Employee Assistance Program: 3 free therapy sessions, concierge services, etc.