Commentary

4.1 Fringe benefits

United States
United States | Commentary

4.1 Fringe benefits

United States | Commentary

4.     Withholding on benefits in kind

4.1     Fringe benefits

Fringe benefits that an employer provides to an employee are taxable benefits and are included in the employee's income unless it is specifically excludable under the tax rules. The amount that is includable in the employee's income is the value of the provided benefit less:

  1.  

    •     the amount that is excluded by law, and

  2.  

    •     the amount that the employee paid for the benefit

The cost or value of fringe benefits are generally included in the taxable wages of the employee and is subject to withholding for both income tax

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