Is rent subsidy reportable income?

GetToWork

We
have employees who receive a salary and a rental subsidy for housing.
The question is whether the subsidy must be reported as income on the
employee's W2?

schleprock

It seems to me that it should be reported as income and that the employer should withhold taxes on it -- do you folks agree?

BKate

I agree with you. A rent subsidy is a form of compensation and should be reported as income on the employee's W-2. Now that I think about it though, would an employer have to pay Social Security and other employment tax amounts on the rental subsidy?