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Imputed Income

What is Imputed Income?

Imputed income is defined as benefits received by workers that are not part of their salaries or wages (such as access to a company vehicle or a gym membership) but taxable as part of their income. While the employee is not required to pay for those services, they are liable for the tax on their value. Employees would have to pay taxes for the price it would cost to buy the same vehicle in the case of the business car. Any work perks, such as life care and food, are prohibited from taxation.

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