What Is Imputed Income?

Imputed income refers to the fringe benefits employees receive, in addition to a salary, that are taxed as part of their income.

What Are Examples of Imputed Income?

What may be included or excluded from imputed income depends on the local regulations. The following items are commonly considered as imputed income:

  • Personal use of a company car;
  • Fitness benefits such as a gym membership;
  • Certain care assistance or group-term insurance;
  • Moving expense reimbursements;
  • Employee education assistance exceeding a certain amount;
  • Adoption assistance;
  • Certain employer gifts such as cash and gift certificates;
  • Health insurance for a domestic partner;
  • Certain employee discounts provided by the company.

What Is Excluded from Imputed Income?

The following items are commonly excluded from imputed income:

  • Health insurance for dependents;
  • Health savings accounts;
  • Group term life insurance below a certain amount;
  • Education assistance below a certain amount;
  • Small or occasional employer gifts.

The elements excluded from imputed income may vary depending on local regulations.

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