Fringe Benefits That Are Seen as Taxable Wages
Did you know that some fringe benefits provided to employees must be included on W-2s as taxable wages?
Items such as the following all should be included in taxable wages each year:
• Health insurance paid by an S Corporation for a greater-than-2% shareholder who is a W-2 employee
• Life insurance to employees with a death benefit of more than $50,000
• Employee’s personal use of an automobile outside of business hours (commuting between home and work is considered personal use)
• Disability premiums paid by an S Corporation for a greater-than-2% shareholder who is a W-2 employee
• Certain employee achievement awards and prizes
Now is the time to review your benefits to determine if any last-minute additions need to be made to wages before year-end. Give us a call with any questions!