Any fringe benefit provided to an employee is taxable income for that person unless the tax law specifically excludes it from taxation. Taxable fringe benefits must be included as income on the employee’s W-2 and are subject to withholding.Click to see full answer. Then, are fringe benefits reported on w2?If the recipient of a taxable fringe benefit is your em- ployee, the benefit is generally subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. However, you can use special rules to with- hold, deposit, and report the employment taxes.Secondly, what is fringe on w2? An employee “fringe benefit” is a form of pay other than money for the performance of services by employees. Taxable fringe benefits must be included as income on the employee’s W-2 and are subject to withholding. Similarly one may ask, where do taxable fringe benefits go on w2? “Taxable” means the benefit is included in the employees’ wages and reported on Form W-2, Wage and Tax Statement, and generally is subject to Federal income tax withholding, social security (unless the employee has already reached the current year social security wage base limit), and Medicare.What are examples of taxable fringe benefits? Examples of taxable fringe benefits include: Bonuses. The value of the personal use of an employer-provided vehicle. Group-term life insurance in excess of $50,000. Vacation expenses. Frequent-flyer miles earned during business use, converted to cash. Amounts paid to employees for relocation in excess of actual expenses.
