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Types of fringe benefits

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

Here are some examples:

  • Moving expense reimbursements
  • Gym memberships and fitness incentives
  • Personal use of a company car
  • Educational assistance and tuition reduction
  • Employee discounts
  • Employer-provided cell phones

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. Learn how to add imputed pay to your payroll.

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