Fringe Benefits Setup

The Tax Reform Act of 1984 mandated that the value of certain non-cash fringe benefits be reported on the 941 and the employee’s W-2. Taxable Fringe Benefits are included as wages, making them subject to Federal Income Tax, FICA, FUTA and possibly some State Income and Unemployment Tax.

Examples of two common Fringe Benefits include Personal Use of Auto and Group Term Life Insurance* Reporting. The Internal Revenue Service has issued regulations defining what is considered a Taxable Fringe Benefit and how to arrive at its value. If you require advice on this, please contact your CPA, as CertiPay does not provide advice on this matter. You can review the IRS website for more information. 

How to add fringe benefits in payroll: 

1. On the Enter Payroll Screen in the right hand column click the blue plus sign under earnings next to the employee's name. 

2. The Add an Earning screen will appear. Choosing from an existing earning will be used if it has been created before OR create a new earning.

Depending on how the fringe needs to be recorded, you may need to use different earning models. You can reach out to Support@CertiPayOnline.com if confirmation as well as use the below links. 

https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits

https://www.irs.gov/publications/p15b

3. Click the blue create a new earning button at the bottom to save to payroll.