Rock the 2025 FPC Exam – Master Payroll Fundamentals with Confidence!

A de minimis fringe benefit is a type of benefit offered to employees that is of minimal value and is infrequently provided, making it administratively impractical to account for its value. This aligns with the concept of de minimis, which refers to things that are so minor or trivial that they do not warrant attention.

In this context, infrequently offered items of small value characterize de minimis fringe benefits effectively, as they do not significantly impact an employee's income and are typically seen as minor perks that don’t need to be taxed. Benefits fitting this description are often simple and casual, such as occasional snacks or small gifts.

The other options describe scenarios that do not fit the definition of de minimis fringe benefits. Regularly provided cash bonuses and benefits that exceed a certain monetary limit suggest a more tangible and substantial value that must be accounted for and potentially taxed. Similarly, perks given to non-employees fall outside of the employee benefit context necessary to qualify as de minimis fringe benefits. Understanding these distinctions is key to recognizing what constitutes a de minimis fringe benefit in payroll practice.