Dónde and Payroll Tax Implications
When you match or reward your employees with Dónde, you are giving your employees a cash fringe benefit. These are subject to all of the applicable employer taxes (e.g., fica, futa, suta) and need to be reported on the employer quarterly reports. For more information on fringe benefits, please refer to
IRS Publication 15-B.*Reporting fringe benefits for your payroll is common and fairly straightforward. As we build out our product features, we are focusing on making it even more simple and effortless through integrations with payroll systems. We would love to hear what system you use, or would like to see us integrate with for tax reporting purposes.
What payroll system do you use?
*Dónde is not a tax advisor entity. We recommend that you seek the advice of a professional tax advisor or lawyer for specific questions around timing and application of fringe benefit taxes.
From your name and profile photo, click on ‘Admin’
3. On the right of the admin page, click ‘View Match Statements’ to see transaction history
4. Toward the top right of the page, there’s a button to ‘Generate Tax Report’
5. From there, you can select the date range you want the report to cover
This range could correspond to your pay period, cover the dates of recent employee rewards or bonuses, or relate to a monthly match process.
Initially, you will need to contact a rep from your payroll company to help set this up. We’ve found this is a quick one-time call or email.
1. Create a unique Dónde fringe benefit code in your payroll system (this is what you will need a rep from your payroll provider to help you create)
2. Once that code is created, log into your payroll portal
3. Select the Dónde fringe benefit code
4. Upload/import the .CSV Tax Report file you downloaded from the Dónde app
Your employees will see a small amount deducted on their paystub to cover the fringe benefit taxes.