Are Your Fringe Benefits Taxed?


A common question is ‘am I being taxed on my benefits?’. Some of the confusion comes from the fact that employers are required to report the value of health care benefits, not necessarily the taxable amount. Other benefits reported on the W2 form include:

  • Contributions to Retirement Plans
  • Health Insurance deducted from your pay
  • Value of Life Insurance Premiums over $50,000
  • Dependent Care Benefits
  • Sick Pay
  • Union Dues
  • A host of State-specific items

Needless to say, it can get very confusing – fortunately the IRS has recently put together a guide to fringe benefits.  Although designed as a training guide for IRS agents, it is well written (for an IRS document).  Anyone responsible for administering benefits in a workplace should get their free copy.  I’d also recommend anyone who decides what benefits to offer should look through it, as well as people who can negotiate their benefits (why not ask for non-taxable ones?)  You can download your free copy here.

The manual covers a multitude of items, some of which you may not have realized are considered ‘benefits’ – definitely worth a look!

If we can help you during tax season, or anytime during the year, please don’t hesitate to contact us.

Cheers!

 

Tom Hodge

President

The Hodge Group

 

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.