Now is a good time to think about the benefits you have given your employees this year. Most of those benefits are probably taxable income and must be added to the employee’s W2. Officers of S-corps and their family members employed in the company have even stricter restrictions when excluding income from W2s so be sure to contact us when in doubt.
An old saying around WOB is “everything is taxable unless it’s not”! Here are some common benefits we find our clients offer:
· Gift cards
· Cash Christmas bonus
· Personal use of company vehicle
· Uniform allowance
· Day care benefits
· Life insurance over 50,000
· Health and life insurance paid for S Corp officers
Please contact us for a complete list and help with calculating your benefits and tax liability. Click here to download employee fringe benefit forms.
