Add fringe benefits and report imputed pay

Fringe benefits are considered non-cash compensation and are taxed as regular wages. These taxable "wages" are called imputed pay. Examples:

If you're unsure if you need to enter imputed pay, we suggest you speak with an accountant to find the correct classification for your situation.

Imputed pay is added to an employee's gross wages for taxability purposes only. It will not be included in the employee's net pay since this benefit was already compensated in another form. 

Add imputed pay to payroll

Imputed pay is considered non-cash compensation that is taxable, also known as fringe benefits. Add imputed pay to your payroll so that it's properly reported.

  1. Click the Benefits tab.
  2. Click Other Benefits.
  3. Select your benefit type or create a Custom Benefit.
  4. Add a benefit name, which will appear on the employee's paystub.
  5. Next to Employee Deduction Per Pay Period, enter $0.
  6. Next to Company Contribution Per Pay Period, enter a default amount with the value of the non-cash item. 
  7. Click Save & Continue.
  8. Select which employees should have this benefit.
  9. Click Save.
  10. If applicable, modify the benefit details for each employee.

The next time you run payroll, we'll record the company contribution for imputed pay and tax the amount as part of the employee's gross wages. It will not be paid out to the employee since this benefit was already compensated in another form.