NOTE: Perform the steps for processing fringe benefits before closing December for Payroll.

Employees must pay taxes on fringe benefits. Fringe benefits include personal use of a company vehicle, life insurance premiums over $50,000, or any non-cash benefits. Some employers record fringe benefits on each payroll, while others do so as a lump sum at year-end

Taxable fringe benefits

Set up a fringe benefit to deduct throughout the year

• Steps to set up a fringe benefit to be deducted throughout the year

Set up a fringe benefit as a lump sum at the end of the year

• How to set up a taxable fringe benefit as a lump sum at year-end

Non-Taxable fringe benefits

• Set up a non-taxable fringe benefit after the final checks have been issued

Manually add fringe benefit to W-2

• Manually add a fringe benefit to W-2