Many fringe benefits are taxable, but not all. And if you don’t include the value of taxable benefits in your employee’s income and withhold taxes, you could face IRS penalties. That’s why it’s crucial to understand the difference between taxable fringe benefits, non-taxable fringe benefits, and de minimis fringe benefits.
Read MoreS corporations can provide health insurance as tax-free employee fringe benefits to non-owner employees. However, if the company provides medical care coverage for shareholders, the premiums are considered taxable income to the shareholder.
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