The Internal Revenue Service (“IRS”) clarified the tax treatment of several work-life referral (“WLR”) services offered by employers in a new Fact Sheet FAQ. According to the FAQ, the value of the WLR services may be deducted from employees’ salary as a de minimis fringe benefit in cases when they are included in employee assistance programs (“EAPs”) or are otherwise bundled with other services.

WLR Programs

WLR services are offered to qualified employees through the employer-funded WLR program. WLR services are informative and referral consultations that help staff members locate, engage, and bargain with life-management providers to find answers to personal, professional, or family problems.

  • Identifying appropriate education, care, and medical service providers
  • Choosing a child or dependent care program
  • Navigating eligibility for government benefits
  • Evaluating and using paid leave programs
  • Locating home services professionals for family members with special needs
  • Navigating private and public service programs
  • Connecting employees with local retirement and financial planning professionals

Generally speaking, unless a part of the Internal Revenue Code (“Code”) expressly excludes it, a fringe benefit given to an employee by their employer is assumed to be income for federal tax purposes.

To read more about the article click HERE

We are dedicated to providing exceptional service, so please do not hesitate to contact our dedicated Total Benefit Solutions health insurance specialists at (215)-355-2121 or fill out the contact form below. We are available to answer any questions or address any concerns you may have.