Any property or service that an employer provides to an employee on an infrequent or sporadic basis, if the value is minimal, is considered:

The concept referred to in this question is known as a de minimis fringe benefit. These are benefits or services provided by an employer to an employee that are infrequent and of minimal value, to the point that they are not considered significant enough to warrant special tax treatment.

De minimis fringe benefits can include items such as occasional snacks provided in the workplace, holiday gifts of small value, or coffee and doughnuts provided for meetings. The rationale behind categorizing these as de minimis is that the administrative burden of tracking and reporting them would be disproportionate to their value.

This classification is significant because it simplifies payroll reporting and tax compliance for employers, as these benefits are typically not subject to taxation. The focus on infrequency and minimal value is essential in determining whether a fringe benefit qualifies as de minimis; if the benefit is frequent or exceeds a certain value threshold, it may need to be taxed or reported differently.