Unless an "Accountable Plan" for employee reimbursements is in place, expense reimbursements are likely supplemental wages subject to supplemental tax withholding rates. If your total annual supplemental wages are greater than $1 million, your employer must withhold tax on the amount over $1 mi...
On this blog, we’ve previously tackled the question of “What are fringe benefits?” As a quick refresher,IRS Publication 15-B, theEmployer's Tax Guide to Fringe Benefits, defines a fringe benefit as “a form of pay for the performance of services.” An employer is the provider of a ...
For employees, a fringe benefit is a great way to save more money since the company takes on some of their regular expenses, like in the case of insurance policies or cell phones. In some instances, these benefits are tax-exempt, like in the case of health insurance....
Understand FUTA tax and how it impacts your business. Learn what FUTA is, 2025 FUTA tax rates, credits, and how to calculate and file your FUTA tax liability.
employee receiving a fringe benefit, like a subsidized gym membership or a four-day work week, you don’t have to go about tax season any differently. For employers, though, it can get a little complicated. According to the IRS, any fringe benefit provided to workers is taxable — unless...
A fringe benefit, sometimes referred to as an employee benefit or perk, is the additional compensation or benefit an employer offers an employee on top of their regular salary or wages. The IRS considers most fringe benefits to be taxable compensation that must be reported on tax forms (e.g...
What Is a Cafeteria Plan? Acafeteria planrefers to a suite of fringe benefits that allows employees to choose among them. Often, these benefits will come out of pre-tax dollars. They may include insurance plans andretirementbenefits. The name cafeteria is used because it is akin to a menu ...
The FICA tax rate is applied to all taxable compensation, including: Salary and wages Tips reported by employees Bonuses and commissions Taxable fringe benefits For specific guidance, IRS Publication 15-B has a chart of various fringe benefits subject to FICA and those exempt (see Table 2-1 on...
Types of Benefits Fringe benefits can come in a variety of forms, depending on the needs and priorities of the employer and its employees. Here are some of the most common types of benefits: Health Insurance Health insurance is a common type of fringe benefit offered by many employers. It ...
The article offers information on the taxability of relocation loans as offered by the fringe benefits through the Internal Revenue Code Section 132. It presents two major exceptions that does not consider employees taxable event including the amount of loan to the employee should not be greater ...