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TSOP NO: |
3.05 |
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SUBJECT: |
Paycheck Modeler – Fringe Benefits |
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SOURCE: |
University Tax Services, Payroll |
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ORIGINAL DATE OF ISSUE: |
03/24/2017 |
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DATE OF LAST REVISION: |
03/24/2017 |
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RATIONALE: |
Employees who receive a non-cash “fringe benefit” are subject to additional tax withholdings per the IRS. There are several fringe benefits provided at IU, including tuition benefit, fitness incentives and other miscellaneous items provided to employees. See the FMS Tax Webpage on Fringe Benefits for more information. This TSOP provides IU employees, who receive a fringe benefit, with the steps to calculate the estimated impact of the additional taxable income to their paycheck. The addition of a taxable, non-cash fringe benefit to a paycheck will result in a lower overall net pay. |
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PROCEDURES: |
The following steps can be used to calculate the impact of the addition of taxable, non-cash income related to a fringe benefit on your net pay: 
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CROSS REFERENCES: |
Employee Fringe Benefits FMS Tax Webpage - Employee Fringe Benefits Federal Income Tax Calculation TSOP 3.01 Federal Income Tax Withholding Calculation |