What You Need to Know about Fringe Benefits and Imputed Income
What You Need to Know about Fringe Benefits and Imputed Income

What You Need to Know about Fringe Benefits and Imputed Income

As you prepare for the end of 2016, Paycor is providing you with some helpful information to assist in explaining how to process Fringe Benefits and Imputed Income.

What is Imputed Income?

When an employee receives non-cash compensation that is considered taxable, the value of that benefit becomes imputed income to the employee. Imputed income is added to the employee’s gross (taxable) income, but is not included in the net pay because the employee has already received the benefit in some other form.

What is a Fringe Benefit?

A fringe benefit is a form of pay for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. The IRS has provided us with an “Employer’s Tax guide to Fringe Benefits” to use in 2011 as an overview of all benefits, exclusion rules, valuation rules, withholding, depositing or reporting.

Follow this link to see the 2016 15-B publication - The Employer's Guide to Fringe Benefits provided by the IRS.

Contact us and we’ll be happy to learn more about your current processes and walk you through a demonstration to show how Paycor can help you become more efficient.


Subscribe to Our Resource Center Digest

Enter your email below to receive a weekly recap of the latest articles from Paycor's Resource Center.

Check your inbox for an email confirming your subscription. Enjoy!

More to Discover

HR COE Benefits Benchmark Quiz

HR COE Benefits Benchmark Quiz

Is your benefits program all it could be? The path to achieving excellence in benefits administration is a continual journey that evolves over three phases. Find out what phase you’re in and get a customized action plan. TAKE OUR QUIZ TO FIND OUT: Quiz will load down below shortly Content loading... Please enable javascript! Recruiting Benchmarking Quiz What’s preventing you from attracting and hiring top talent? To get to the next level, evaluate your team’s approach to benefits and open enrollment. Where are you losing time? What routine tasks are holding you back? Once you answer these core questions, you can devise a plan to leverage technology to drive efficiencies. Based on your responses, you’re in Phase 1: To get to the next...

HR Software for Small Business: 3 Things to Look For

HR Software for Small Business: 3 Things to Look For

Your Time is Valuable When you own your business, there are a lot of “you should’s.” You should network. You should follow up with prospects. You should build a brand. You should prioritize customer service. But no small business guru ever said you should do more paperwork. Or you should project manage every step of recruiting and onboarding new employees. Or that you should worry more about compliance. If you own a business, or if you think like an owner, repetitive administrative tasks can be time consuming. Any organization with one or more employees can benefit from payroll and HR technology. For example, take hiring a new employee. How much time does it take you or your team to: Write an offer letter Issue an I-9 and W-4 Write a...

Sample PTO Policy for Small and Medium Businesses

Sample PTO Policy for Small and Medium Businesses

Some small to medium sized businesses have undocumented paid time off (PTO) policies simply because they’re not sure where to start. Employers aren’t required by law to provide paid vacation leave; however, specific states, cities and federal contractors must, by law, provide paid sick leave. Also, under the Fair Labor Standards Act (FLSA), employers aren’t required to provide paid leave, but they can’t refuse to pay exempt employees for absence due to illness or disability unless they have a documented plan for paid time off specific to these absences, and those exempt employees are either not eligible yet or have used up their PTO benefits under the plan. Establishing clear and compliant employee policies is essential to avoiding...

Video: How to Stay Compliant in 2019

Video: How to Stay Compliant in 2019

From managing recruiting compliance data to accurately tracking employee hours, you need a partner who can offer the right technology plus expertise to help mitigate risk. Watch this video to learn how Paycor can help.