Accounting, Payroll & Pension Issues/Giving assets to employees

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Question
Hi,
Do I need to tax (W-2) an employee if my company gives them a computer? If so, is it NBV or FMV.
Thanks,
Stephanie.

PS I looked on the IRS website and couldn't find the info!

Answer
http://www.irs.gov/pub/irs-pdf/p15b.pdf  Publication 15b Employer's guide to Fringe Benefits

This would be a taxable benefit on the Fair Market Value of the item unless it is an achievment award or a length of service award. If it is an achievement award you are allowed
up to 400.00 in a non qualified plan per employee or 1600.00 for a qualified plan. This is an annual amount per employee.


Check out the publication listed above for more on awards. If it is simply a gift and not for achievement or length of service it is taxable for fair market value.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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