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You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare.
Examples of de minimis benefits include the following.
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Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes.
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Holiday gifts, other than cash, with a low fair market value.
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Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000.
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Meals. See Meals, later.
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Occasional parties or picnics for employees and their guests.
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Transportation fare. See Transportation (Commuting) Benefits, later.
Employee. For this exclusion, treat any recipient of a de minimis benefit as an employee.