What is a taxable fringe benefit?

Taxable fringe benefits—they're not just decorative. These are non-cash benefits your employees receive that are subject to taxes. It’s important to make sure these are taxed appropriately, or else a great benefit can turn into a burden.

Also referred to as “imputed pay,” a taxable fringe benefit is the value of non-cash services or benefits that employees receive that is subject to tax. These “services or benefits” can include things like life insurance premiums above a certain amount, gym memberships, or moving expenses. The value of these benefits are typically reported to the IRS using form W-2 at the end of the year, and can also be reported on pay stubs.

Check out IRS publication 15-B to learn more.

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