What are ‘Taxable Expenses’ or ‘Taxable Fringe’ and why are they on my pay statement?

Taxable Expenses – Certain types of expense reimbursements, such as commuting mileage; expenses that are submitted for reimbursement more than 60 days after the expense is incurred; cash advances in excess of actual expenses that are not re-paid within 120 days after the expenses were paid or incurred are taxable income. They are added to an employee’s pay check, increase taxable gross income, taxes are withheld accordingly, and income is reported annually on the W-2.
Taxable Fringe – a fringe benefit is defined by the IRS as “a form of pay for the performance of services. For example, an employee is provided with a fringe benefit when allowed to use a business vehicle to commute to and from work.” In this example, personal use of a state owned vehicle would be considered a fringe benefit and would be added to your taxable gross income.