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- DictionaryFringe ben·e·fit/ˈfrinj ˌbenəfit/
noun
- 1. an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.: "some occupations offer an employer's pension as a fringe benefit"
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A fringe benefit is a form of pay in addition to stated pay for the performance of services. Learn how to determine the taxability, valuation, withholding and reporting of various types of fringe benefits, such as health, transportation, education and more.
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- What Are Fringe Benefits?
- Understanding Fringe Benefits
- Tax Considerations
- Valuing Fringe Benefits
- The Bottom Line
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Fringe benefits are additions to compensation that companies give their employees. Some fringe benefits are provided to all employees, while others may be offered to executives only. Some benefits may include a company car, paid time off, or gym membership. Employers use fringe benefitsto help them recruit, motivate, and retain high-quality talent.
Common fringe benefits are basic items often included in hiring packages. These include health insurance, life insurance, tuition assistance, childcare reimbursement, cafeteria subsidies, below-market loans, employee discounts, employee stock options, and personal use of a company-owned vehicle. Uncommon fringe benefits may fit the company profile....
By default, fringe benefits are taxable unless they are specifically exempted. Recipients of taxable fringe benefits include the fair market value in their taxable income for the year. The Internal Revenue Service (IRS) maintains a list called the Tax Guide to Fringe Benefits. The list of fringe benefits excluded from income taxes includes: 1. Acci...
Any fringe benefit not named above, or any of the benefits named above that does not conform to IRS rules for exemption, is taxable. The exemption rules are complex, also. For example, working condition benefits are taxable to the extent that they are for personal use. If an employee is given a laptop, the taxable income would be the percentage of ...
Fringe benefits are additional incentives designed to attract and retain talent. Examples of fringe benefits are paid time off for specific occasions, exercise areas, or pet-friendly work environments.
Fringe benefits are additions to compensation that companies give their employees, such as health insurance, tuition assistance, or employee discounts. Learn how fringe benefits work, what types of benefits are available, and how they are taxed.
- Julia Kagan
- 2 min
May 30, 2024 · Fringe benefits are perks or extra compensation over and above regular salary that employers pay to their employees. Learn about the types of fringe benefits, their tax implications and how they can help attract and retain talent.
- The most common examples of fringe benefits include health insurance, retirement plans, workers competition, family and medical leave, paid vacatio...
- Compensation over and above an employee’s direct wages or salaries is called a fringe benefit. This may be monetary in terms of bonuses and allowan...
- Fringe benefits enable businesses to attract, recruit, motivate and retain highly skilled employees. Fringe benefits also result in increased loyal...
Feb 1, 2024 · What is the definition of fringe benefits? Fringe benefits are a form of pay, often from employers to employees, and are considered compensation for services beyond the employee's normal rate of pay. These employee fringe benefits can be property, cash, cash equivalents, discounts, savings accounts, and even non-tangible benefits like experiences.
Oct 10, 2022 · Fringe benefits are compensation that employers sometimes offer team members in addition to wages. They could benefit the individual's finances or lifestyle. Learn about different types of fringe benefits, their advantages, taxability and more.
