Learn how to pay and track fringe benefits on your employees’ paychecks in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
To attract new team members to your business, you may want to offer benefits beyond health insurance and retirement. Fringe benefits like mobile phone, internet, or gym allowances, lodging, meals, transportation (commuter), tuition, GTLI, PUCC, S-Corp medical are just some additional benefits you can provide.
Fringe benefits can be cash or non-cash and have special reporting requirements. Most fringe benefits are taxable and need to be added to your employees’ paychecks and W-2s. Find out more about fringe benefits from the IRS.
We show you how to set up and report fringe benefits on your employees’ paychecks.
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Step 1: Add a fringe benefit pay type to your employee profile
Step 2: Add the fringe benefit to your employee’s paycheck
The fringe benefit needs to be reported on a paycheck before the end of the calendar year so it can be taxed appropriately and reported on your employees’ W-2s. You may need to report large non-cash fringe benefits over several pay periods so you don’t negatively impact your employee’s net pay.