ACC 377 Lecture Notes - Lecture 4: Health Savings Account, De Minimis, The Employer
Exclusion treatment is available for insured taxpayers who are either terminally ill or chronically ill.
Accident and Health Benefits
Congress encourages employers to provide employees, retired former employees, and their dependents
with these.
Cafeteria Plan
The employee is permitted to choose between cash or nontaxable benefits such as child care.
Compensatory Damaes
Intended to compensate the taxpayer for the damages incurred. Only those received on account of
physical personal injury, or physical sickness can be excluded from GI.
De Minimis Fringe
Benefits that are so small that accounting for them is impractical. Ex: personal use of a copy machine,
holiday gifts.
Death Benefits
An employers can make payments to a deceased employee's surviving spouse, children, or other
beneficiaries.
Foreign Earned Income Exclusion
Taxpayer can either (1) include the foreign earned income in their taxable income then claim a credit for
foreign taxes paid, or (2) can exclude up to $101,300 in foreign earned income from their GI.
Fringe Benfits
Benefits other than wages and salary that are provided to employees by the employer.
Health Savings Account (HSA)
Part of a medical reimbursement plan. The employer can purchase a medical insurance plan with a high
deductible, and then make contributions to the employee's HSA.
find more resources at oneclass.com
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Document Summary
Exclusion treatment is available for insured taxpayers who are either terminally ill or chronically ill. Congress encourages employers to provide employees, retired former employees, and their dependents with these. The employee is permitted to choose between cash or nontaxable benefits such as child care. Intended to compensate the taxpayer for the damages incurred. Only those received on account of physical personal injury, or physical sickness can be excluded from gi. Benefits that are so small that accounting for them is impractical. Ex: personal use of a copy machine, holiday gifts. An employers can make payments to a deceased employee"s surviving spouse, children, or other beneficiaries. Taxpayer can either (1) include the foreign earned income in their taxable income then claim a credit for foreign taxes paid, or (2) can exclude up to ,300 in foreign earned income from their gi. Benefits other than wages and salary that are provided to employees by the employer.
