Imputed Income

What Is Imputed Income?

The definition of imputed income is benefits employees receive that aren’t part of their salary or wages (like access to a company car or a gym membership) but still get taxed as part of their income. The employee may not have to pay for those benefits, but they are responsible for paying the tax on the value of them. In the example of the company car, employees would have to pay taxes on the amount it would cost to lease that same car. Some benefits employees receive are excluded and tax-exempt, such as health insurance or meals.

What Are Examples of Imputed Income?

Many fringe benefits may be taxed depending on the value of the benefit received by the employee. Other benefits are taxed regardless of the monetary amount. Here are some examples:

Take the next step

Explore our BambooHR packages and get a quote in no time flat.

Get a Free Price Quote

What Is Excluded from Imputed Income?

In general, excluded benefits are those that are below a certain value threshold or qualify for special treatment, as in the case of health insurance for dependents. Here are some examples:

Fast, easy, and accurate payroll with BambooHR®.

Pay your U.S.-based employees on time, every time.

Learn More

You might also like

Gain Better Insights with Reporting + Payroll in BambooHR®

Reporting is a must-have functionality when it comes to payroll. Payroll admins need to be able to quickly and easily create actionable reports—not only for informing business strategy, but to carry out essential tax functions, ensure future payroll runs, and more. And when it comes to presentations, who doesn’t love generating a beautifully organized goldmine of targeted insights with a mouse-click?

Watch Now

BambooHR Product Demo: Payroll

Meet payroll in BambooHR! Paired with Time Tracking, this add-on turns your account into the end-to-end solution to paying your employees accurately and on time—every time.

Download Now