Which item does NOT qualify as a de minimis fringe benefit?

• A. Occasional parties and picnics for employees
• B. Occasional supper money for working overtime
• C. Traditional holiday gifts, such as food items
• D. Group legal services worth less than $100 annually

Answer: (D)

De minimis fringe benefits are small, noncash perks that are infrequent and simple to administer because their value is so minimal. Occasional parties or picnics for employees, and traditional holiday gifts of food items, fit this idea because they are casual, low-value events or gifts that happen without formal accounting. Occasional supper money for working overtime also qualifies because it’s a small, irregular amount provided for a specific occasion and not a regular wage enhancement. Group legal services, even if under $100 annually, do not fit the concept since a service provided to employees carries value and involves a type of benefit that isn’t the kind of incidental, low-cost perk de minimis typically covers.