If an employee is in debt to you and you release the employee from the obligation to repay the debt, the unpaid amount is a debt waiver fringe benefit. Show the amount of this kind of benefit at item D.
A debt owed by an employee that you write off as a genuine bad debt is not a debt waiver fringe benefit.
Start of example
Example: Complete debt waiver fringe benefits
An employer waives a $500 debt that an employee owed from a previous year.
The employer shows this at item 23 as follows: