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Imputed income increases your taxable gross income, and is subject to federal and state income taxes and FICA (Social Security and Medicare) taxes.
Some examples of imputed income include: Adding a domestic partner or non-dependent to your health insurance policy. Adoption assistance surpassing the non-taxable amount. Educational assistance surpassing the non-taxable amount. Group term life insurance in excess of $50,000.
Imputed income increases your taxable gross income, and is subject to federal and state income taxes and FICA (Social Security and Medicare) taxes.
Unless specifically exempt, imputed income is added to the employees gross (taxable) income. It isnt included in the net pay because the employee has already received the benefit in some other form. But it is treated as income so employers need to include it in the employees form W-2 for tax purposes.
The definition of imputed income is benefits employees receive that arent 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.
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Examples of imputed income Educational assistance that exceeds $5,250. Non-deductible moving expense reimbursements. Employee discounts that exceed the tax-free amount. Fitness incentives such as a gym membership.
Do not include imputed income in an employees net pay. Because employers treat imputed wages as income, you must tax imputed income unless an employee is exempt. Imputed income is especially common in determining child or spousal support in family law matters.
Do not include imputed income in an employees net pay. Because employers treat imputed wages as income, you must tax imputed income unless an employee is exempt. Imputed income is especially common in determining child or spousal support in family law matters.

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