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.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.