Generally, employers must report the value of fringe benefits provided to employees as taxable income, unless the IRS explicitly excludes them. Excludable (non-taxable) examples include:
- Employee discounts on goods or services
- Qualified parking subsidies up to $340 per month (as of 2026)
- Company services offered at or below cost
- Modest holiday gifts ◊ Minimal personal use of office equipment
- Occasional company parties
More substantial benefits — such as personal use of a company car or country club memberships — must be included in taxable income. Starting in 2026, most moving expense reimbursements and bicycle commuting reimbursements are now fully taxable and must be reported as employee income.