What is a marginal tax?

Fringe tax tax is any tax on a good or service provided by employees by an employer who is not included in the employee's regular remuneration. As a result, these benefits are in many cases taxable of honesty towards those who do not accept them. Examples of common marginal benefits are company cars or the use of private accommodation for purposes without business. There are some employee benefits that are not subject to marginal benefits, such as a free parking service because they are provided to all employees. Since these benefits are of value for employees and are provided as a remuneration for the work of an employee, they are often taxed in the same way as the income taxable. Since not every worker gains these benefits, those who receive them must pay taxes for them. Employees should be aware of what benefits are specifically qualified for marginal benefits to prepare accordingly.

The tax collection process usually begins with the employer, including the benefits obtained from the tax forms submitted by the employees and the government tax authority. It is up to the employer to determine the taxable value for the advantage. For example, an employer who allows an employee to remain in a residence owned by the company for a weekend and also provides travel accommodation could determine the value of this trip for $ 2,000 (USD). Once this value is determined, the employee is taxed by the relevant rate.

In some cases, the marginal benefit tax may be collected depending on how the employee takes advantage. The most common example is when the employer provides employees a company car. When an employee uses a car for business purposes, it is generally not a situation requiring taxes to be paid. If an employee uses a car in a situation without a business during his / herAbout personal life, an employee would probably have to pay taxes on this use.

Not every advantage provided to employees is subject to the marginal tax. In general, if all employees gain a certain advantage, this advantage is not taxable. There are also certain advantages whose value is so negligible that they may not be included in the tax forms. Employees can consult tax experts about what is a marginal advantage that must be included in the tax return and what can be rejected.