Section 101.6a. Fringe benefits in the form of use of property or services

(a) Remuneration for services received in the form of personal or business use of property is not taxable as compensation if the following requirements are met:

(1) The property belongs to, or is held under a lease by, the employer at the time of use.

(2) No title, interest or estate therein is conferred upon, or vested in, another person.

(b) Examples of property that are excludible from tax if the requirements of subsection (a) are met include:

(1) Educational or training facilities.

(2) Housing or clothing.

(3) Day care facilities.

(4) Passenger cars and commuter highway vehicles.

(5) Aircraft or water craft.

(6) Construction or recreation vehicles.

(7) Athletic facilities or equipment.

(8) Recreational facilities or equipment.

(9) Entertainment facilities or equipment.

(10) Parking facilities.

(11) Eating facilities.

(12) Office facilities or equipment.

(13) Tools, equipment or supplies.

(c) Remuneration for services received in the form of personal or business use of services is not taxable as compensation if either:

(1) The service is provided or supplied directly by the employer or a co-employee.

(2) Rights to the service were procured beforehand by the employer.

(d) Examples of services that are excludible from tax if the requirements of subsection (c) are met include:

(1) The operation of an eating facility.

(2) Transportation in a commuter highway vehicle.

(3) Air or rail transportation of passengers or cargo.

(4) Parking.

(5) Education or training.

(6) Legal, medical, accounting or other professional or technical services or assistance, including adoption assistance.

(7) Day care services or assistance.

(8) Dependent care assistance.

(9) A tuition reduction provided to an employee or his dependents or to a teaching and research assistant.

(e) Remuneration for services received in the form of consumption of a consumable, such as food and supplies, is not taxable as compensation.

(f) This section applies even if:

(1) The use or service is offered on a discriminatory basis.

(2) The employer incurs substantial additional cost, including forgone revenue, in providing the use or service.

The provisions of this § 101.6a adopted August 4, 2000, effective August 5, 2000, 30 Pa.B. 3938.

Notation

Authority

The provisions of this § 101.6a issued under section 354 of the Tax Reform Code of 1971 (72 P. S. § 7254).

Cross References

This section cited in 61 Pa. Code § 101.1 (relating to definitions); and 61 Pa. Code § 101.6 (relating to compensation).