Do you offer your employees non cash wages as part of their compensation package?
If so, their fringe benefits may be taxable. If you don’t report them properly, you can be penalized. Other payroll taxes, such as Social Security and Medicare, may be underpaid and under reported, this can cause problems.
If you have a retirement plan like a 401(k), contributions are generally calculated using an employee’s “compensation.” Well, if you miscalculate employees’ “compensation” due to incorrect exclusion of fringe benefits, this can lead to compliance issues for your retirement plan. You can also be penalized for incorrect retirement plan calculations!
Don’t get trapped!
Stan is an active Certified Public Accountant (N.C. Certificate #32076) in North Carolina. With over seventeen years of experience exclusively serving local, privately-owned businesses, he is passionate about helping business owners optimize their potential, be proactive, and solve crises. Call Stan P. Moore CPA at 919 ♦ 233 ♦ 0076 for a consult today. For more information or contact us here!
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