What employee fringe benefits are taxable?
Due to the current tough labor market, many employers are looking for various ways to retain their valuable employees by offering perks (“fringe benefits”) in addition to compensation. A fringe benefit can be anything the employer gives as a “form of payment,” such as property, services, cash, or a cash equivalent. The article below from Accounting Today discusses fringe benefits, legal perks, taxable vs. non-taxable, and what to avoid.
As always, if you have any questions about your current fringe benefits offerings or thinking about adding additional fringe benefits for your employees, please don’t hesitate to reach out to your tax advisor for additional information.