As 2021 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages. This is especially true for 2021, since COVID relief brought about a number of changes to the rules relating to traditional fringe benefits.
2% S Corporation Shareholders
Certain otherwise excludable fringe benefits are required to be included as taxable wages when provided to a 2% S corporation shareholder.
The CARES Act made a number of changes to the rules relating to employee fringe benefits; make sure you are up-to-date.