1. Compensation and tax benefits: compensation tax

2. The question is: whether a "payment or service" is compensation?
COMPENSATION TAX I.R.C. § 61 The Starting Point for a Compensation Tax Analysis
Gross income means all income from whatever source derived, including (but not limited to) the following items…..
I.R.C. § 61(a)(1): compensation for services, including fees, commissions, fringe benefits, and similar items
The question is: whether a "payment or service" is compensation?

3. COMPENSATION TAX I.R.C. § 132(a) What is excluded from "Compensation"?
§ 132(a) excludes from gross income certain payments or services that might look like "compensation," but are really nontaxable fringe benefits:
No-additional-cost service
Qualified employee discount
Working condition fringe
De minimis fringe
Qualified transportation fringe
Qualified moving expense reimbursement
Qualified retirement planning services
But if it is not one of these then the payment to, or service on behalf of, the employee is includable in income

4. COMPENSATION TAX I.R.C. § 132(a) What is excluded from "Compensation"?
Other certain fringe benefits also excluded from income:
Group term life insurance
Dependent care assistance
Employee achievement awards
Medical expense reimbursement plans
Educational assistance programs

5. COMPENSATION TAX I.R.C. § 162 What falls within the "Compensation" bucket?