Imputed income is the value of non-cash compensation that must be included as part of an employee’s taxable income. It’s crucial for small business owners to understand what imputed income is, as it directly affects payroll and tax reporting.
By grasping what imputed income encompasses, small business owners can ensure compliance with tax laws, avoiding potential penalties. We’ll explore various forms of imputed earnings, clarify what is imputed income on a paycheck, and highlight notable examples of imputed income.
