What is Imputed Income?

Imputed income refers to any benefits received by employees that are not part of their salary or wages. These benefits – such as company vehicles or gym memberships – are taxed as part of the employee’s income. While the employee may not pay for these benefits, they are obligated to pay taxes on their value.

What is subject to imputed income?

Some employee benefits, such as health insurance or meals, are excluded and not subject to taxation. The value of excluded benefits is typically below a certain threshold or they may qualify for special treatment.