Which of the following is considered a "de minimis" fringe and is excluded from taxable earnings?

The concept of "de minimis" fringe benefits refers to small benefits that are so minor in value that accounting for them would be impractical and burdensome. These benefits are generally considered to be excluded from taxable income for employees.

The correct answer, a gift certificate for a ham or turkey, qualifies as a de minimis fringe benefit because it can be regarded as a traditional, nominal holiday gift that is of little monetary value and is provided infrequently. The intent behind offering such gifts is often to promote goodwill among employees rather than to provide substantial compensation, which further supports its exclusion from taxable earnings.

In contrast, the other choices, such as gift certificates for specific retailers or a company check, are treated differently by tax regulations. Retail gift certificates, regardless of the amount, can be easily converted to cash and provide a tangible benefit that exceeds the threshold intended for de minimis treatment. Similarly, a company check functions as direct income, making it subject to tax withholding. Thus, while they may seem like small gifts, they do not meet the criteria required to be classified as de minimis fringe benefits.