IRS' Next Target: Workers' Free Meals, Gym Memberships?
Adam Housley reported on the morning of Tax Day 2014 on the IRS' idea of possibly taxing perks and "freebies" for workers at high-tech companies. For instance, some companies in Silicon Valley offer employees free meals, complimentary shuttle service and free yoga classes or gym memberships.
At some tech companies, like Facebook for instance, workers enjoy free meals by an executive chef, lavish cafeterias or a big takeout spread.
Housley noted that the perks started in California as a way to attract the best talent, but it's now spreading around the country to other industries.
Employers argue the perks make their employees happier, leading them to do better work, which benefits customers and shareholders. The IRS declined comment for the report, but Uncle Sam is reportedly looking into whether all of these perks should be labeled fringe benefits, and thus be subject to tax.
Housley noted that if all of these perks become taxable, then companies would likely respond by paying their employees more.
Watch the report above from America's Newsroom.