Payroll Essentials: Fringe Benefits: Taxable or Not?

Overview

Fringe benefits are just another way of paying your employees. Do you know how to correctly track fringe benefits, as well as apply and report the various withholding tax rules for those fringe benefits? The IRS says fringe benefits must be included in and reported as a part of employee pay, but with any good tax law, there are always exclusions to that rule. Knowing how to handle fringe benefits can be complicated, especially in an area that changes on an annual basis. Attendees will leave with an understanding of what the requirements are around fringe benefits, what constitutes a fringe benefit, and whether it is taxable or not. We will also explore the evergreen areas of reporting S-Corp Shareholder Health, HSA, and when cash is not taxable compensation. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics covered in this class include:

• What is and what is not a fringe benefit
• Payroll tax withholding rules on taxable fringe benefits
• Payroll reporting on employee checks, payroll returns, and W-2s
• What to watch for at year end and where to go to get resources

Prerequisites

None

Designed For

Appropriate for professionals at all organization levels, including seasoned professionals. This includes CPAs in public practice, as well as tax professionals working in industry, including those in Controller and CFO roles with limited exposure to payroll.

Objectives

After attending this presentation you will be able to...

• Identify what constitutes a fringe benefit
• Distinguish between taxable and non-taxable fringe benefits
• Recall changes made by the TCJA to certain fringe benefit rules
• Recognize what fringe benefits require reporting on year end W-2s

Preparation

None