De minimis fringe means any property or service whose value is unimportant and too small or insignificant to be considered. They are the minimal or small benefits provided by an employer to his/her employees. De minimis is a latin term which means minimal. The term de minimis has got its origin from the Latin phrase "de minimis non curat lex", which means the law does not deal with trivial matters. Under the tax law a de minimis is a small amount that is not subjected to taxation.
For a property or service to be a de minimis fringe it must be unusual or occasional in frequency and its value must not be a misrepresentation of compensation. The frequency of the benefit, value of the benefit, and administrative impracticality are the three factors that are generally looked into by the Internal Revenue Service (IRS) in determining whether a property or service is a de minimis fringe.
The term "de minimis fringe" is defined under 26 USCS § 132 (e)(1) as any property or service the value of which is (after taking into account the frequency with which similar fringes are provided by the employer to the employer's employees) so small as to make accounting for it unreasonable or administratively impracticable.