The IRS Pub 15-B, also known as the Employer’s Tax Guide to Fringe Benefits, guides how to report fringe benefits on Form W-2. It also identifies the types of fringe benefits that are taxable or exempt. This book is updated every year, so it’s important to look at it before you file your employment tax return. The IRS has a lot of shiny balls in its collection, and Pub 15-B, which is the IRS Fringe Benefits Guide, is no exception.
The latest edition features an informative front covers that will likely prove to be an enlightening experience. In addition, the publication is also home to numerous tidbits of trivia and wacky newsprint-worthy surprises. Unlike many of its counterparts, Publication 15-B is not a snobbish clone. Hence, a well-trained staff is all but assured of reaping the rewards.
What are Fringe Benefits?
A fringe benefit is a payment that’s given to an employee in exchange for services performed. While most are taxable, a few are exempt from employment taxes. For instance, a meal provided to an employee in the employee’s workplace would qualify as an exclusion. In most cases, these benefits are also exempt from Social Security and Medicare taxes.
The IRS has special rules that can help employers report and pay employment taxes. Fringe benefits are reported on Form 1099-MISC and on an employee’s W-2. Employers are encouraged to keep records of these benefits and to pay attention to the rules for exclusions.
Features of Publication 15-B – Employers Tax Guide to Fringe Benefits
The Internal Revenue Service (IRS) recently released the final version of Publication 15 (PDF). It is also known as Circular E, the Employer’s Tax Guide, and the Federal Income Tax Withholding Methods. These publications contain instructions and data pertinent to employers. For example, what is the tax rate on fringe benefits? And how do you go about calculating it?
One of the more interesting things about Pub 15-B is that it is designed to give you a general understanding of your tax obligations. Specifically, you will learn how to calculate and report your fringe benefits. This guide is a must-read and will ensure that you make the most of the tax laws of the land.
In addition to the information listed above, the publication also gives an overview of the industry that pays taxes. This includes a rundown of the rules governing the IRS’s tax-filing requirements. You’ll also discover how to navigate the IRS Form 1099-MISC maze and a refresher on your employer’s tax responsibilities. Furthermore, you’ll learn what a properly prepared W-2 looks like. This will be of great benefit to both you and your employees.
In addition to presenting you with the requisite data and instructions, the publication also covers the oh-so-important matter of what is the best way to tax your employee’s fringe benefits. There are many ways to do this, some of which are simple and some of which are more complicated.