Overview: Fringe benefits, such as health benefits, company cars, commuter transportation benefits and educational assistance plans, just to name a few, are the icing on the cake in attracting and retaining high quality employees. In this heavily regulated area, however, employers must stay abreast of frequent payroll tax law changes to prevent an otherwise tax-free fringe benefit from becoming fully taxable. Employers must also look out for changes to the special payroll tax rules that apply to other common types of payments such bonuses, severance pay and back pay.
Author: Rena Pirsos, JD, Legal Editor
Updated to reflect 2019 inflation-adjusted amounts.
The IRS has released Revenue Procedure 2018-57, which lists the inflation adjustments for a variety of employer-provided fringe benefits for 2019.
Updated to include proposed regulations regarding § 401(k) plan hardship distributions.
The IRS has released the 2019 cost-of-living adjustments (COLAs) to the dollar limitations on benefits and contributions to qualified retirement and deferred contribution plans.
Updated to reflect new information regarding moving expense reimbursements, and meal and entertainment expenses, effective January 1, 2018.
A Quick Reference chart has been added to XpertHR to help an employer comply with the sweeping tax reform law signed by President Trump on December 22, 2017. The legislation affects an employer's legal compliance with several key payroll, fringe benefit, ACA and other employment law provisions.
Payroll tax laws affecting fringe benefits and other common employer payments.