Taxable Fringe Benefits can affect businesses so be sure to report them towards the end of the year to take care of it for the upcoming year. These are examples of possible fringe benefits:

  • Allowance for personal use of company car
  • Allowances for meals or housing
  • Moving expense reimbursements
  • Awards and prizes (achievement awards, safety awards, etc.)
  • Qualified transportation fringes
  • Non job-related educational assistance
  • Employee business expense reimbursements
  • Dependent care benefits
  • Employer Qualified HSA contributions are nontaxable, but reportable as Code W in Box 12 of W-2
  • Group Term Life Insurance (over $50,000)
  • Third Party Sick Pay
  • Health Insurance for a 2% Shareholder

If you plan to give out any bonuses to employees for the holiday season/year-end, late November/early December is a good month to send that information over to us. If it is included in your regular payroll, the bonus checks cost $2/employee. But if we have to run an additional payroll, we do charge your regular payroll fee for that additional one. It is to your benefit to plan accordingly so we can process the bonus checks with your normal payroll.

Please call us with any questions!