7 tax-free benefits for employees
During tax season, employees are sharply reminded of how much cash Uncle Sam takes from their paychecks. Many workers already take advantage of benefits such as tax-exempt health savings accounts, group term-life insurance and even tax-deferred benefits in retirement plans. Some fringe benefits, however, are lesser known for their tax-exempt status. Here are seven tax-free benefits that keep cash in employees’ pockets, as well may provide attractive deductibles to companies. (Images: Thinkstock)
6. Dependent care assistance
Generally, an employee can exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. However, the exclusion cannot be more than the smaller of the earned income of either the employee or the employee’s spouse.
