On October 17, 2022, the IRS released the updated Fringe Benefits Guide (Publication 5137) to assist federal, state, and local government employers in determining the correct tax treatment of employee fringe benefits, including using the appropriate withholding and reporting procedures. This publication covers:
- An overview of how to determine whether specific types of benefits or compensation are taxable
- Procedures for computing the taxable value of fringe benefits
- The taxation and exclusion rules applicable to employee benefits
- Reporting of the taxable value of fringe benefits
Though this publication is intended for government employers, it provides citations to regulations and guidance related to fringe benefits that may be helpful for private employers as they are subject to most of the same rules.
Government employers should be aware of the availability of the updated publication and most recent modifications. Private employers should refer to the IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits, regarding employees' fringe benefits taxation and exclusion rules.