Nowadays, employers need to offer various benefits if they want to recruit and retain employees.

The value of these benefits is known as imputed income, and employees need to pay taxes on their value and report it to the IRS by filling out W2-Forms and pay stubs.

But how do you report imputed income on a pay stub?

 Although it might seem difficult at first, don’t worry—we’ve got your back! Keep reading to find all the answers you need.

Imputed income represents the benefits that an employee receives that aren’t part of their net pay.

The most common examples of imputed income include employee discounts, personal use of company cars or cell phones, educational aid, etc.

Fringe benefits are the benefits that are used to compensate employees beyond their regular wages and can be taxable or non-taxable.

Some common fringe benefits are gym memberships, de minimis benefits, housing allowance, moving expenses, etc.

Determine the fair market value of benefits

Simply put, "imputed income'' refers to the benefits an employee receives that aren’t part of their wages or salary. It’s the cash equivalent value of an employee’s non-cash benefits. This income is added to the employee’s gross wage, but it isn’t included in their net pay.

The best way to understand imputed income is through an example. For instance, if your employee completes a project before the deadline and you award them with a $50 gift 

, that is considered an imputed income benefit.

Most importantly, as an employer or a business owner, you must report your employees’ imputed income on 

, as it’s taxable. Generally, both you and your employees need to pay FICA tax, which includes a 1.45% 

 and a 6.2% Social Security tax on earnings.

Lastly, imputed income benefits can be given to employees in the US as fringe benefits, which we’ll go over shortly.

Now, let’s explain fringe benefits because you’ll need to identify them when reporting imputed income for your employees.

As you’ll notice, imputed income and fringe benefits overlap. The biggest difference between the two is that the former is legally required, whereas the latter isn’t and is handed out at the discretion of the business owner.

In layman’s terms, fringe benefits are used to compensate employees beyond their regular wages. For example, they might include stock options, cell phones, gym memberships, snacks, meals, etc.

Most of the time, fringe benefits are promised in job ads to attract new employees and job hunters. They are an easy way to motivate someone to work extra, but keep in mind that fringe benefits can be both taxable and non-taxable.

Generally, the majority of fringe benefits come in the form of a service or a product instead of a cash payment. This makes them taxed based on their cash-value equivalent.

The most common taxable fringe benefits are:

Employer-provided cell phone for non-business use

Still, there are exemptions for this, as some fringe benefits are non-taxable—according to the IRS—and deducted on a pretax basis. They are reported on the annual tax return and include benefits such as:

Medical insurance plans, such as health, vision, and dental care

Qualified employee discounts and transportation benefits

Whether you’re an employer or an employee, you need to have a crystal-clear picture of what is considered imputed income. Here are some of the most common examples of imputed income you can see:

Employer gifts, such as cash and gift cards

Personal use of a company’s or employer’s car

Non-deductible moving expense reimbursements

Educational assistance and reduction of tuition

Any use of an employer’s issued cell phone

Health insurance for non-dependents (e.g., a domestic partner)

Employee deduction assistance over the excluded amount

Adoption assistance that exceeds the tax-free maximum

Group-term life insurance that exceeds more than $50,000

Employee’s income from exercising nonstatutory stock options

Employee’s taxable income from the issuance of restricted stock

Meals and lodging, except during tax-deductible business travel

Travel expenses not related to business (e.g., paying for an employee’s vacation)

Care assistance for an employee’s dependence that exceeds the tax-free maximum

Gym memberships and other fitness benefits, such as wellness program incentive

Benefits that are not counted as imputed income are called “de minimis benefits." The IRS finds these benefits impractical and unnecessary to keep track of, as they hold little value and are unusual and not frequent.

According to the IRS, anything with a value less than $100 is excluded from imputed income and is considered a 

Some of the exemptions from imputed income include:

Transportation expenses for overtime work

Group-term life insurance for dependents with a face value of up to $2,000

Use of a cell phone provided by an employer for business purposes

Gifts such as books, flowers, or fruits provided under special circumstances (e.g., International Women’s Day)

How to Report Imputed Income for Employees

As previously mentioned, employees are required by the IRS to report imputed income on W-2 forms every year. The deadline for this is usually January 31st, and here’s how you can do it.

The first step requires you to identify which fringe benefits are taxable, as they are the ones that will end up on the W-2 form. For example, if you are giving an employee $2,000 in education assistance per year and, let’s say, $500 for a gym membership, you will have to list both of these benefits.

#2. Determine the Fair Market Value of Benefits

As some fringe benefits come in the form of services or products, you will need to determine their fair market value or cost. "Fair market value" is the price at which the product or service would sell on the open market.

For example, if you are providing an employee with a company car, you need to determine how much money the employee would have to pay to obtain the vehicle on their own. You should also consult 

 for more rules on car fair market valuation.

Note that you can find other important information on taxation and reporting of imputed income in Publication 15-B.

Once you’ve calculated all fringe benefits for your employee, you need to report them on the W-2 form. The easiest way to fill in this form is to use an online 

, as you’ll only have to enter the required information and download the document.

Usually, imputed income is listed in boxes 12a through 12d.

How To Report Imputed Income on Pay Stubs

Other than reporting imputed income annually on the W-2 form, you also need to display imputed income every month on pay stubs. This is an important legal document that contains all the details regarding your employee’s pay (e.g., work hours, gross wages, net pay, etc.).

Keep in mind that all employers are required to provide paystubs to their employees and 

 for at least 4 years, according to the IRS.

The easiest way to make pay stubs and report imputed income on them is to use an 

. The process of filling out a template takes only a couple of minutes, after which you can download the document right away!

#1. Why do I have imputed income on my pay stub?

All employers are required by law to report imputed income annually on W-2 forms and monthly on pay stubs. This value is tracked, reported to the IRS, and subject to:

#2. Is imputed income an earning or deduction?

Imputed income is treated as income because employers are required to include it in their W-2 forms for tax purposes.

#3. How much do you get taxed on imputed income?

As of 2022, for imputed income, you are taxed 6.2% for Social Security and 1.45% for Medicare.

#4. What are some examples of imputed income?

Some examples of imputed income include employee discounts, awards, prizes, employer gifts (e.g., gift cards and cash), personal use of company cars or cell phones, health insurance for non-dependants, etc.

Struggling with imputed income and fringe benefits? Find out how to report imputed income on a pay stub with zero complications!

What is Imputed Income on a Pay Stub? Definition and Examples

Whether you’re a freelance or full-time writer, you need to determine exactly how much your clients need to pay and send them a writer invoice. 

Some companies don’t even want to pay the writer if they don’t provide this important legal document.

So, what’s the best way to create a writer invoice, and why is it so important?

If you want to find the answer to this question, you’ve come to the right place! We’ll answer your questions about writer invoices and show you how to create these documents in a few easy steps.

A writer invoice is a financial document outlining the services you provide to the client and the amount due in return.

 It also serves as proof that a transaction actually happened.

Whether you’re part-time, full-time, or a freelance writer, you need an invoice for each project you take on, as it allows you to:

Easily keep track of the services you have provided to different clients

See which clients have missed due dates (if any)

Avoid missing or late payments from your clients

Clearly communicate your charges to clients

Keep track of your outstanding debt and business growth

Have information crucial for tax time in one place

Now that you know what a writer invoice is and why it’s important to you, 

let’s break down everything you need to include in it!

The first thing you need to list on your writer invoice is your contact information,

Besides this, you can also add a logo for your business. Although it’s not mandatory, 

displaying your company’s logo in the invoice makes the document seem more professional

. On top of that, a logo will help your clients easily identify you in the sea of competitors.

Next, you should specify who the invoice is for. 

You must include the recipient's name, email address, phone number, and any other vital contact information.

Be sure not to forget any information on your client that you think is useful

, as you’ll likely be going back over this section when tracking down the payments later on.

Once you’re done filling out all the contact information, you need to enter an invoice number. This number is incredibly useful if you want to easily keep track of your invoices.

Although there are no set rules on which numbering system you need to opt for, you should ensure it’s in sequential order

, as it will help you stay organized later.

For example, if it’s your first invoice, simply start with #001. Your next invoice should be #002, and so on, even if the clients are different.

After adding the invoice number, you need to specify when the 

Most freelance writers opt for a 30-day, 45-day, or 60-day timeline, but you can choose the timeline that best fits your preferences. You can also use the “on receipt” option, which will require the recipient to pay for the invoice once they receive it.

In this section, you need to write down your preferred payment options.

 For example, you can choose whether you want to be paid with cash, a credit card, a check, or a payment system such as PayPal.

 if the client you’re working with offers that payment method. Nonetheless, you will still need to send an invoice every time you finish a project.

Once you determine the preferred payment methods, you’ll also want to provide a description of the services you’re being paid for by the client. If you’ve been hired for multiple services, such as writing, editing, or publishing articles, list each of them, and add the rate you expect.

You can also write any additional details that your client might find useful under each specific service.

This way, the billed party will have a clear breakdown of what they’re paying for, and the chances of any miscommunication will be reduced to zero.

Next to the detailed list of the services you provide, you need to specify how much they cost. 

You can either list costs per service or choose to be paid 

Most importantly, you need to display the net sum of your services or the full amount due. Make this an emphasis on your invoice so that it’s easily noticeable and the client can see how much they owe you right away.

Last but not least, in the “Additional Notes” section, you should write down all other details you think the client might want to know about your services and the project you’re working on.

Different Types of Invoices for Freelance Writers

 is crucial if you want to get paid adequately 

because each type has its own specific uses. Some of the most common types of invoices are:

Small business invoices are used by companies with no more than 1,500 employees and a maximum of $41.5 million in average income. They serve as a record of the goods or services the company provides to its customers.

 This invoice type allows you to ask for a portion of the payment for your work in advance.

As its name suggests, a contractor invoice is used by independent contractors who require payment for the goods and services they provide.

If you want to send your client an invoice before the work starts to give them a better idea of what they can expect, you can send an advance invoice.

 This type of invoice is also known as a credit memo and is used to detail refunds.

 Do you charge for your work at hourly or daily rates? If so, you should use a freelance invoice.

A tax invoice is used by companies that charge for services or products that are subject to taxes.

All of the invoices that are listed above can be issued physically or online. If you don’t want to be bothered with paper anymore, you can create digital invoices and make your invoicing process effortless.

As a rule of thumb, you should send your writer invoice to your client as soon as you’ve finished the work you’ve been contracted for.

If you’re too busy to send the invoice immediately, make sure to do it within the first 48 hours after the job. By doing so, your client will know they’re due for payment on time, which, in turn, will improve your cash flow since they will pay sooner.

In case a client is late with the payment, you can send them a follow-up letter to remind them they owe you money.

To create a writer invoice, you can either use Word or Excel and enter all the required information manually. Keep in mind that this method is prone to errors and can be time-consuming, especially if it's your first time invoicing.

Arguably, the most efficient and easiest way to create a writer invoice is to use an online generator.

 This tool is simple to use, and most importantly, it will save you a lot of time.

Once you’re finished, you can download your writer invoice right away and send it to your client in a few clicks.

If you want to get paid as a writer, you need to take care of your paperwork and provide your clients with invoices. Hopefully, this article has helped you get a firm grasp on these important documents and shown you how to make them easily.

Just visit our online invoice generator, make sure to include all of the things listed in this article, double-check everything, and you’ll be good to go!

A writer invoice is a legal document that breaks down the services you, as a writer, provide to a specific client and defines the payment terms for a specific project.

Typically, a writer invoice includes your and your client’s contact information, a unique invoice number, payment terms, etc.

The best time to send a writer invoice is within 48 hours after you complete the job.

The easiest way to make a writer invoice is to use an online invoice maker.

Creating a writer invoice doesn't have to be difficult. Learn all about this key document and make one with our online invoice generator!

What is a Writer Invoice, and How To Create One Hassle-Free?

Whether you’re a one-person design studio or you work with a team, you need to provide your clients with a graphic design invoice to get paid on time.

 But what is a graphic design invoice exactly, and how do you create this important document?

Regardless of the services you provide, whether logo design or video making, a graphic design invoice tells your clients exactly how much they owe you.

Although making one might seem difficult or time-consuming, it doesn’t have to be! 

This article will tell you everything about this key document and show you how to make one using our online generator without breaking a sweat!

So, read on and get all the answers you need!

As its name suggests, a graphic design invoice is a document used by graphic designers. It outlines the payment terms they’ve agreed to with the client regarding the project they’re working on.

This legal paper also contains a breakdown of the services they provide and other important details, such as their contact information, taxes, etc.

As a graphic designer, you can use this type of invoice for various projects and services, such as:

Invoices are beneficial to graphic designers, as they allow them to stay in control of their clients' accounts, know when payments are due or overdue, monitor their business growth, and easily file the W-2 form when it’s 

As a graphic designer, you also need to fill out a 1099 tax return form every year by the 31st of January. For this, you’ll need to enter each tax you’ve paid throughout the fiscal year and 

If you want to get this important document and fill it out hassle-free, use our online form generator.

 We’ll provide you with a 1099 form tailored to your business needs, so you don’t have to make one on your own from scratch!

What to Include in Your Graphic Design Invoice

To ensure you get paid correctly and on time, you need to include the right type of information in your graphic design invoice.

 Check out which details go into a standard graphic design invoice in the section below.

When filling out your graphic design invoice, you must make sure to include your business information,

 such as your name, phone number, contact addresses, etc. Then, you need to enter the same information for your client.

As a graphic designer, you should also include a logo in your invoice.

 It will make your business stand out from the rest of the competition and help your clients easily recognize and remember your brand.

Besides your and your client’s information, you need to specify the date when you wrote and handed out the graphic design invoice.

Once you add the date to your invoice, you must give a unique number to the document, which is required by law in some states. A numbering system will help you when you’re looking for a specific invoice and make organization much simpler.

The best way to organize your invoices is to number them in chronological order. For example, use “001” for the first, “002” for the second, etc. This way, you’ll be less likely to lose your invoices, and finding a specific one in the sea of other invoices will be much easier.

You can also add the last two numbers of the year the invoice was issued in front of the three-digit number. For example, if the invoice was written in 2022, simply add 22 in front of “001”, so it looks something like this in the end “22002”

This is one of the most important sections of your graphic invoice, as you need to provide your client with a breakdown of the services you’re billing them for. 

You need to be as specific as possible here to avoid any mix-up with the client.

So, list every service you provide, specify the amount of money you’re looking to get for every item, and include tax next to each entry.

After detailing the services you provide to the client in your graphic design invoice, you must add the payment details.

 Choose your preferred payment method (e.g., credit cards, PayPal, cash, etc.) and the payment 

Then, you need to clearly specify how much your client owes you in total, so you should also write down the net price of your services and goods. This is the total sum before taxes are deducted or any discounts are added.

Last but not least, although it is not required, you should add a personalized 

 for the client in the “Additional Notes” section.

 This way, you’ll ensure the tone of the invoice is friendly and show that you appreciate their trust.

You can also offer discounts to future projects and ask for additional feedback, which can help you improve your company.

To make a graphic design invoice, you can either use software like Word or Excel and write this document from scratch or have it made by an online generator.

Keep in mind that the first method is time-consuming and can be quite difficult, especially if it's your first time invoicing. For this reason, you should use an online invoice generator. 

It’s efficient, easy to use, and can provide you with a personalized document in no time.

Now that you know what to include in your graphic design invoice and how to make one easily, 

here are some things you should keep in mind when it comes to invoicing:

 In cases where you’re working with a new client, you shouldn’t hesitate to ask for an upfront payment. Once you establish a business relationship, you can receive money once you complete your work.

 To get paid on time, you should send your invoices as soon as you’re done with the job. On the other hand, if you’re asking for an advanced payment, you should submit the invoice beforehand.

In case your client is late with the payment, sending them a follow-up invoice will remind them that they owe you money. In case they refuse to pay you, you can use the invoices as proof and file a case against them in court.

 When you’re filling out your graphic design invoice, you should ask your clients what name they want to appear on the invoice, their contact information, etc. Make sure there are no typos or any other types of mistakes before you save the invoice and hand it to the client.

 You need to file a 1099 form annually for tax purposes, for which you’ll need your invoices at hand. That’s why you should store them somewhere safe, such as a file cabinet. Still, the best way to do it is to collect them digitally on an online drive so that you can easily access them at any point in the future.

The best way to ensure you get paid by the clients is to accept various payment methods. Don’t just opt for cash or credit card payments, as services such as PayPal are getting more popular by the day.

Whether you’re providing web design services or you’re a professional illustrator, you’ll need to provide your clients with an adequate graphic design invoice. We hope that we managed to prove to you that the invoicing doesn’t have to be difficult even if you thought otherwise!

, you’ll be able to create this document in no time. 

So, check out what we have to offer and use our templates to create a tailor-made invoice!

A graphic design invoice is a document that outlines the payment terms for various design services, such as logo design, illustrations, etc.

Besides the payment terms, a graphic design invoice must include your and your client’s details, a breakdown of your services, and a thank you note.

When invoicing as a graphic designer, you should ask for upfront payments, double-check your client’s details, and send your invoices on time.

The best way to make a graphic design invoice is to use an online generator.

Creating a graphic design invoice doesn't have to be difficult. Read on and find out how to create this document easily with an online generator!

How to Create a Graphic Design Invoice [Free Templates]

If you’re a business owner who plans to export your goods to a buyer in another country, you will need to provide a legal document that will serve as proof of agreement between you and the carrier

. For this, you will have to use a shipping invoice.

A shipping invoice is a document that goes by many names and is primarily used by sellers who send their shipments overseas. But why is this document so important, and how do you make one?

In this article, we’ll tell you everything you need to know about shipping invoices and show you how to create them effortlessly using an 

A shipping invoice serves as a binding contract and an agreement between you, the shipper, and the freight carrier.

 Also known as a "bill of lading," "trucking invoice," or "freight invoice," this legal document outlines the details of a shipment, such as:

A shipping invoice is a must-have legal document when exporting your goods. Use our invoice generator to create it with zero hassle!

Blog

What is Imputed Income on a Pay Stub? Definition and Examples

What is a Writer Invoice, and How To Create One Hassle-Free?

How to Create a Graphic Design Invoice [Free Templates]

What is a Shipping Invoice and How to Create One [2025]

The Best Way to Make an Invoice for Cleaning Services [2025]

Invoicing Checklist: How to Create an Invoice Correctly

What is a Construction Invoice and How To Create One Easily

What is a Photography Invoice, and How to Create One in a Snap?

What is a Contractor Invoice and How to Make One Effortlessly

What is a Tax Invoice, and How to Create One Step-by-Step?

What is 2/10 Net 30 Exactly and How to Calculate It

What is a Year-to-Date Payroll? YTD Meaning Explained

How to Create a Pay Stub if You Are Self-Employed