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Fringe Benefits
(redirected from fringe benefit)

   Also found in: Dictionary/thesaurus, Medical, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.06 sec.
Fringe Benefits
Fringe benefits are benefits received by an employee in addition to salary. Examples include educational assistance, moving expense reimbursement, stock options, and dependent care assistance. Some fringe benefits (for example, accident and health benefits, and group-term life insurance (up to $50,000)) may be excluded from the employee's gross income and, therefore, are not subject to federal income tax.


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Thus, there is no fringe benefit paid to the 2% shareholder, Sec.
Beyond wages to lower-bracket children, consider compensation from a C corporation (or a proprietor to a spouse) to gain fringe benefit advantages.
Under long-established law, when a corporate officer uses a company jet for his own personal reasons, unrelated to the business of the company, the use of that company plane is considered a fringe benefit and the officer has to recognize the value of that fringe benefit as additional compensation on his personal income tax return.
 
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