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 |
- Yes, unless the commission is paid to an insurance agent or solicitor who is paid solely by commission.
- 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.
- Yes, through first six full calendar months following employee absence.
- No, if the benefit is provided by a plan.
