Many fringe benefits are taxable and must be included in your employees’ W-2 income. Some of the most common are:
- Personal use of company vehicle
- Health insurance premiums paid for S-Corp shareholders
- Premiums paid for group term life insurance in excess of $50,000
- Holiday & other cash bonuses
- Parking/transit pass reimbursements in excess of $265/month
- Gym or club memberships
- Moving expense reimbursements
- Education reimbursements (over $5,250 job-related, or all non-job-related education)
These adjustments should be provided to your payroll company before your final 2019 payroll is processed so they can be included on your W-2s.
For further information regarding other less common benefits, and benefits exempt from taxation, please refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits, or contact us at 401-831-0200.