Several common perks and allowances fall under the scope of imputed income. These may include personal use of a company car, gym memberships, housing stipends, relocation benefits, education reimbursements for dependents, and group-term life insurance over IRS limits. Even discounted company products or interest-free loans might qualify depending on local tax laws.
Employers must assess the fair market value of these benefits and add them to employees’ taxable wages. With international teams, it becomes more complex due to varying imputation rules. 1EOR simplifies this process by managing localized payroll adjustments and ensuring every employee’s income is reported accurately, globally.