Types of imputed pay
Imputed pay is considered non-cash compensation that is taxable, also known as fringe benefits. According to the IRS, imputed pay can typically include:
- 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. See how to add imputed pay to your payroll.