[n2d4]

Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.

[krupan]

You'd think so, right? Look up why corporations started providing insurance to their employees. Look into why your compensation is not just a salary, but salary, bonuses, stock (options or RSU's), etc.

[wmf]

AFAIK health insurance is special-cased by law. I had to pay (a trivial amount of) tax on imputed income from IBM's life insurance. The IRS is wise to a lot of perks like company cars.

[n2d4]

As others have mentioned, health insurance is special and may or may not be taxed. Bonuses and stock however are taxable.

[jjav]

> Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.

The company doesn't gift them a car. The company buys a car held in the name of the company and lets the person use it.

[giaour]

If used for personal purposes, that car at your disposal would still be a taxable benefit.

[sudhirj]

It isn't usually classified as a gift, it's company property that you use exclusively. So on the books it's a depreciating asset for the company.