Employee relations reasons or tax reasons

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KPI continues to do well and the KPI’s employees are pretty happy with the retirement plan that was adopted. You stay in touch with Jenny by helping her out with questions on the retirement plan when they come up and doing some of her tax compliance work. After a couple of years and a couple of conversations with you, Jenny decides that she would like to provide some fringe benefits to her employees. KPI’s offices are in Tysons Corner. Quite a few of her employees take the Metro and those who don’t drive. Most of KPI’s employees are in their 20s and 30s, and in pretty good health.

1. List the 6 most important fringe benefits you think Jenny should consider and for each benefit listed, in no more than two sentences, state why that benefit would be a good alternative. Your reasons could be business reasons, employee relations reasons or tax reasons.

2. Jenny says she thinks all she can afford to provide right now are three fringe benefits. Based on your answer to Question 1, which 3 benefits would you suggest KPI adopt? Discuss the key features of each of the fringes you are recommending. Please limit your response to two sentences for each component of the package.

3. Do you have any suggestions for how employees can help pay for some or all of the cost of the benefits you recommended in Question 2 on a tax advantaged basis? Please limit your response to 3 sentences.

Reference no: EM131045540

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