Year end reminders

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.