Taxable Benefits

Taxable benefits are perks or non-cash compensation that an employer provides to an employee, which are subject to income tax. Examples include company cars, health insurance, bonuses, and housing allowances. While these benefits can enhance an employee’s overall compensation, they also increase the employee's taxable income, meaning the employee may owe more in taxes. It’s essential for employees to understand the value of these benefits and how they impact their tax situation, as they can affect take-home pay and financial planning.