Recently issued IRS Fact Sheet 2024-13 provides guidance on the tax treatment of work-life referral (WLR) services provided by employers to employees under a work-life referral program. In a nutshell, WLRs are tax-favored as de minimus fringe benefits in accordance with Internal Revenue Code § 132(a)(4) meaning that the benefit is excludable from the employee’s income.
A WLR program is an employer-funded fringe benefit that provides work-life referral services to eligible employees. These services are informational and offer referrals that help employees with identifying, contacting, and negotiating with life-management resources for personal, work, or family challenges. WLR programs are often part of an employee assistance program or can be combined with other services and programs offered by an employer.
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