mahoning valley historical society

 

1920's automobile

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Industries: Automotive

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Fringe Benefit Matrix

The chart below can be used as a guide for understanding the federal tax status of common fringe benefits. It provides a reference for use in preparing employee W-2 Forms.

EMPLOYMENT TAX PROVISIONS
FEDERAL TAXABLE
FIT W/H
FICA W/H
SUBJECT TO FUTA
Auto - Personal Use
Yes Optional Yes Yes
Bonuses
Yes Yes Yes Yes
Christmas Gifts (other than non-cash gifts of nominal value)
Yes Yes Yes Yes
Club Dues
Yes Yes Yes Yes
Commissions
Yes Yes Yes 1
Disability Insurance Premiums Paid by Employer
No No No No
Sick or Disability Payments
2 Yes 3 3
Qualified Cafeteria Plans
No No No No
Health Insurance Premiums (including dental & vision) paid by employer
No No No No
Non-qualified Deferred Compensation
Yes Yes Yes Yes
Group Term Life In Excess of $50,000
Yes No Yes 4
Employer Paid Premium on Individual Life Insurance Policies
Yes Yes 4 4
401K & SEP (Employee Elective Deferral)
No No Yes Yes
Exceptions for S Corp. Shareholder
Health Insurance


Yes


Yes


No


No
Cafeteria Plans
Not Permitted To Participate
Disability Insurance  Yes Yes No No
  1. Yes, unless the commission is paid to an insurance agent or solicitor who is paid solely by commission.
  2. Yes, except for: workers compensation benefits; employer reimbursements for medical expenses from a fully insured plan or a nondiscriminatory self-insured plan; payments unrelated to an employee's absence from work (such as a fixed sum paid for a loss of a limb); damages on account of personal injury; and payments attributable to employee contributions.
  3. Yes, through first six full calendar months following employee absence.
  4. No, if the benefit is provided by a plan.

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