Offering new perks? Heed tax rules on fringe benefits

by on
in Centerpiece,Compensation and Benefits,Human Resources

With pressure on wages still tight, employers are whipping up new employee perks almost every day. The problem, of course, is that no one consults Payroll before the big rollout to employees.

That’s a mistake, since perks are taxable, unless the tax code says they’re not.

Gas and go. To combat high gas prices (down from earlier this year, but still substantially higher than this time in 2010), some companies are giving employees preloaded gas cards as bonuses and birthday presents. Gas cards have a dollar value, so, like any gift card, they’re fully taxable to recipients. If you don’t want to hand employees a surprise tax bill, the company needs to pay employees’ taxes by grossing up the face value of the gas card.

On the other hand, some employees have access to more fuel-efficient company cars. This perk is a tax-free working condition fringe benefit to em­ployees as long as they use company cars for business and they acco...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

{ 1 comment… read it below or add one }

insurancebread.com November 16, 2011 at 10:05 am

Comparing Auto Insurance With your neighbors.

Insurancebread.com enables you to find out whether you are paying too much or less than others in neighborhood.

Insurance companies basically provides insurance rate depending on where you are now living.

You are not required to provide your personally sensative information to receive the result.

It takes only a few minutes.

http://www.insurancebread.com

We believe Sharing is always Good!

Insurancebread.com

Reply

Leave a Comment