When you make purchases using funds offered by your employer, that spending may be taxed as income. Taxability depends on your specific benefit program and its design.

What to know

Taxability is determined at the benefit level. If a benefit is taxable, all purchases under that program are taxable and vice versa.

Tax rules are set by relevant local governments and vary from country to country. In the US and in many countries, items related to directly doing your job are generally non-taxable.

Common questions

How do I know if my benefit is taxable?

If you are curious about what items would be taxable/non-taxable, you can refer to your benefit policy: simply navigate to the Accounts page from the app or website, and click or tap into the desired benefit. From there, you'll see a dropdown labeled "View overview" which you can expand to show more taxability details!

How will taxable spending affect my income and taxes?

In general, you can expect to be taxed at your normal income tax rate for any spending completed under taxable Benepass benefits. These taxes will appear on your paycheck.

You can read more about how Benepass programs impact your income and taxes here: How do Benepass programs affect my taxes?

What about sales taxes?

Purchases made with Benepass cards are subject to the same local sales taxes as any other credit card purchases. A non-taxable Benepass benefit does not exempt you from local sales taxes.