IRS Publishes Fringe Benefit Guide for Government Entities
Published October 18, 2022
The IRS has updated Publication 5137 Fringe Benefit Guide, created to provide federal, state, and local government employers with a basic understanding of the federal tax treatment and reporting rules for various fringe benefits.
The publication covers:
- How to determine whether specific types of benefits or compensation are taxable.
- Procedures for computing the taxable value of fringe benefits.
- Rules for withholding federal income, Social Security and Medicare taxes from taxable fringe benefits.
- Reporting the taxable value of fringe benefits on Forms W-2, Wage and Tax Statement, and 1099-MISC, Miscellaneous Income.
- How to contact the IRS with questions on taxation and reporting requirements.