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

RISE Web Summit: The Value of Benefits Admin Integrations: 3 Perspectives

RISE Web Summit: The Value of Benefits Admin Integrations: 3 Perspectives

Join in on the conversation between 3 different perspectives on the value and advantages of Benefit Administration Integrations in today's HCM space. Included in this discussion are representatives from Caravus, Employee Navigator and Paycor.

’47 Brand Case Study

’47 Brand Case Study

Learn how Paycor’s unified HR platform helped ’47 Brand overcome their toughest HR challenges. From recruiting top talent to tracking employee time and managing labor costs, managers can now focus on what really matters – running their business.

The Advantages of Investing in a Human Resources Solution

The Advantages of Investing in a Human Resources Solution

As an HR professional, your day-to-day responsibilities can include everything from recruiting candidates, to onboarding them when they become new employees, to ensuring that everyone gets paid, and in your “spare” time, keeping up with the mountain of compliance that relates to the previous activities. But, really, spending time on those tasks just scratches the surface of what you do every day. You also have to work to improve employee engagement and retention across the company. Unfortunately, those tedious administrative tasks can get in the way of your ability to focus on big picture strategies or connecting with employees in a more meaningful way. But there’s a light at the end of the tunnel (and, no, it’s not an oncoming train!)....

HR Center of Excellence Overview Video

HR Center of Excellence Overview Video

Welcome to the HR Center of Excellence. A dedicated resource center with action plans and inspiration to help you unlock the true power of HR and make a difference in your organization. Start exploring! Watch the HR Center of Excellence overview video, below: