Benefits are tax-free only if they are provided in addition to wages

Many employers want to show their employees some appreciation by offering them fringe benefits such as commuter passes for local transit, daycare subsidies, or subsidies for preventive health care—all of which are tax-free or subject to reduced taxes. However, the Federal Fiscal Court has made it clear that such benefits must be strictly separate from the regular salary (i.e., they must not be counted toward it or otherwise reduce the regular wage)—otherwise, they are not tax-advantaged and ultimately end up costing more…