Introduction If you provide a fringe benefit to an employee, you must generallyinclude the value in the employee's wages. This chapter explains thevaluation rules for fringe benefits that you include in an employee'swages. However, it does not cover all the exceptions to these rules,or the rules that apply to the use of an aircraft. For moreinformation, see section 1.61-21 of the regulations. This chapter also discusses some special rules that allow you toexclude the value of certain fringe benefits from an employee's wages.See chapters 3and 5 for information on excluding the value of certainother benefits from wages. For information about deducting the cost of fringe benefits, seechapter 2.