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Taxing the Extras: Fringe Benefits and Their Tax Consequences – Sam Moriarty Tax Senior Associate

The complex world of fringe benefits sits at the intersection of employee satisfaction and tax compliance—a space where both employers and employees need expert guidance to navigate successfully. Tax Senior Associate Sam Moriarty pulls back the curtain on these valuable workplace perks that extend beyond basic salary.
Sam brings 23 years of expertise to this discussion, explaining how benefits like health insurance, paid time off, 401k matching, and company facilities must be properly reported to avoid costly penalties. For employees, these perks create a sense of value and address essential needs, allowing them to focus on performance without external worries. For employers, a thoughtful benefits package becomes a powerful tool for attracting talent, boosting morale, and reducing turnover in competitive markets.
The tax implications can be significant and sometimes surprising. S corporation shareholders must treat health insurance as taxable income on their W-2s, while company vehicles for personal use require proper reporting as well. Improper handling of these requirements can trigger underpayment penalties with accumulating interest for employers, while employees might face the headache of amended tax returns and unexpected liabilities. As the workplace evolves, so do fringe benefits—with flexible schedules, remote work options, daycare reimbursement, pet-friendly policies, and on-site facilities becoming increasingly common. Before implementing any benefit program, Sam strongly recommends consulting with an attorney experienced in employment law to navigate the complex regulatory landscape.

Call 413-739-1800 to connect with our team and ensure your benefit strategy enhances employee satisfaction while maintaining full tax compliance.

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