Martin Hood LLC | Fringe Benefits That Are Seen as Taxable Wages
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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!