Daily News
From Home Furnishing Business
Smith Leonard Issues Reminder on Common Taxable Fringe Benefits in 2020
December 4,
2020 by Laurie Northington in Business Strategy, Industry 
Accounting and consulting firm Smith Leonard has sent out a reminder to retailers on the importance of reporting the proper inclusion of common fringe benefits in an employee’s, officer’s, and shareholder’s taxable wages.
Fringe benefits are defined as any form of pay (including property, services, cash, or cash equivalents) for performance of services given by a company to its employees as a benefit, and must be included in an employee’s pay unless specifically excluded by law. Some of the most common taxable fringe benefits are the personal use of a company vehicle, life insurance premiums paid by the company, and employee awards, gifts, and prizes.
The firm recommends the value of the taxable fringe benefits be determined prior to year-end to allow for the timely withholding and depositing of payroll taxes. They also remind companies that failure to properly report to the recipient and the IRS on Form W-2 or Form 1099 may result in lost deductions and additional tax and civil penalties.