IRS Publication 15B — Employer's Tax Guide to Fringe Benefits
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“Exception for S corporation shareholders. Don’t treat a 2% shareholder of an S corporation as an em- ployee of the corporation for this purpose. A 2% share- holder for this purpose is someone who directly or indi- rectly owns (for any day during the tax year) more than 2% of the corporation’s stock or stock with more than 2% of the voting power.”
Direct deposit of employment tax refunds now available. EO 14247 , Modernizing Payments To and From America’s Bank Account, issued on March 25, 2025, promotes operational efficiency by mandating the transition to electronic payments for all federal disbursements. Accordingly, the IRS will now issue employment tax return refunds by direct deposit. Direct deposit is a fast, simple, safe, and secure way to have your refund deposited automatically to your checking or savings account. Instead of a direct deposit refund, you can still choose to have your overpayment applied to your next return by checking the appropriate box on your employment tax return. For more information, see the instructions for your employment tax return.
Make balance due payments electronically. EO 14247 also promotes operational efficiency by mandating the transition to electronic payments for all payments made to the federal government. Therefore, pay your balance due on your employment tax return electronically. There are several easy, safe, and secure ways to pay your balance due electronically. For more information, see the instructions for your employment tax return. Employment tax return transcripts are now available electronically. You can now access Form 940, Form 941, Form 943, Form 944, and Form 945 return transcripts for tax years 2023 and later using your IRS business tax account. For more information, go to IRS.gov/ BusinessesT ranscript. To access your IRS business tax account, go to IRS.gov/BusinessAccount.
Dependent care assistance exclusion from wages. For the 2026 tax year, the annual dependent care FSA limit was raised from $5,000 to $7,500 ($2,500 to $3,750 for married filing separately). See Exclusion from wages , later.
Employer’s meal deduction. For amounts incurred or paid after 2025, the employer can no longer deduct expenses associated with providing food and beverages to employees through an eating facility that meets the requirements for de minimis fringe benefits or for the convenience of the employer. The 50% deduction that applied through 2025 has been eliminated as part of a scheduled change in the 2017 Tax Cuts and Jobs Act. See De Minimis Meals, later. Employer payments of student loans. P .L. 119-21 permanently extends the $5,250 exclusion from income for employer-provided educational assistance for payments made after 2025. See Exclusion for employer payments of student loans, later.
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