Year-End Fringe Benefits: Check Payroll’s Accounting Cutoff
HR Morning reports that payroll teams should review whether the IRS special accounting rule fits their taxable noncash fringe benefits before year-end. The optional rule lets employers treat benefits provided in November and December, or a shorter period within those months, as paid the following year, such as personal use of a company vehicle in late 2026 counted in 2027 wages. Employers can choose which benefits to cover but must apply the rule to all employees receiving each selected benefit, and must notify employees of the accounting period at or near W-2 delivery.
