Are Fringe Benefits Taxable?
Any fringe benefit you provide is taxable and must be included in the recipient’s pay unless the law specifically excludes it. Chapter 2 discusses the exclusions that apply to certain fringe benefits. Any benefit not excluded under the rules discussed in chapter 2 is taxable. Including taxable benefits in pay. You must include in a recipient’s pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. • Any amount the law excludes from pay. • Any amount the recipient paid for the benefit. The rules used to determine the value of a fringe benefit are discussed in chapter 3. If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2. However, you can use special rules to withhold, deposit, and report the employment taxes. Publication 15 and Publication 15-A discuss these rules. If the recipient of a taxable fringe benefit is not your employee, the benefit is not subje
Related Questions
- Ive heard that I can give de minimis fringe benefits to my business employees without increasing my employees taxable income. What benefits qualify as de minimis?
- Which fringe benefits amount should I use for "C. Taxable value of fringe benefits" on the Certified Statement of Rateable Remuneration?
- How do I set up a payroll item for wages, tips, or taxable fringe benefits?
