22. Tax-free Fringe Benefits

Warning 22
If you receive a benefit from your employer, which he/she says is tax-free – be careful. You should get a indemnity from your employer which means that he/she pays any tax if the IRS decide the benefit is taxable.

Unions negotiating tax-free fringe benefits should make clear to an employer that the benefits should be taxed so as to increase the taxable wages of the employee to the same level as before the tax was imposed.