If you have considered offering your employees fringe benefits, you should be aware of which benefits are taxable and which are not. The IRS has a helpful published guide with all the details, but here is a quick note…
Typically, any fringe benefit is taxable and should be included in the recipient's compensation unless specifically excluded.
Here is an example of an easy guide summarizing excludable fringe benefits from the publication:
It is important to understand this information and report it correctly on the recipient's W-2 or 1099. It can be costly to have your payroll company issue corrected reports so make sure to track this information and reported to your payroll company in a timely manner.
