Which of the following is an example of a non-taxable fringe benefit?

Working condition fringe benefits are indeed an example of a non-taxable fringe benefit. These benefits are provided to employees and allow them to receive certain items or services necessary for performing their job without facing tax implications. The IRS defines working condition fringe benefits as those that an employee can exclude from their taxable income because they are provided to facilitate the employee's work duties.

For instance, if an employer provides an employee with equipment, tools, or other assets that are necessary for their job, those benefits would not be considered taxable income for the employee. This contrasts with other stated options, which may have different tax treatments. Cash awards, typically considered supplemental wages, are subject to income tax and payroll taxes. An athletic facility not owned or operated by the employer can also be taxable, as it might not meet the criteria of an employer-provided benefit. Meals for business travel that do not involve an overnight stay usually do not qualify for the same fringe benefit exclusions as those related to overnight travel expenses.

Thus, understanding the nature of various fringe benefits and their tax implications is crucial for payroll professionals to correctly categorize and report employee compensation.