Imputed Income

What is Imputed Income?

Imputed income is defined as advantages that employees receive that aren’t included in their pay (such as the use of a company car or a gym membership) but are nevertheless subject to taxation as a component of their income. Even while the employee may not be required to pay for certain perks, they are nonetheless subject to tax on their value. Some advantages that employees receive, such as food and health insurance, are exempt from taxation.