fringe benefits


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fringe benefits

any additional benefits offered to employees, such as the use of a company car, free meals or luncheon vouchers, interest-free or low-interest loans, private health care subscriptions, subsidized holidays and share purchase schemes. In the case of senior managers, such benefits or perquisites (perks) can be quite substantial in relation to wages and salaries. Companies offer fringe benefits to attract employees and because such benefits provide a low-tax or no-tax means of rewarding employees compared with normally taxed salaries.

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.
References in periodicals archive ?
8226; How to handle tax consequences on fringe benefits
For other fringe benefits that are typically tax-free to employees, there is generally equivalent treatment for 2% shareholders, partners and LLC members.
Any discount over these limits is a taxable fringe benefit (Regs.
Michael Sheridan, chairman and founder of Fringe Benefits Management Company, said, "This is a strategic partnership in every sense.
Part II presents a brief history of the taxation of nonstatutory fringe benefits.
274(a) did not disallow the deductions in Sutherland, the Tax Court concluded that when an employer includes in the employee's income the value of the vacation flight as determined under the fringe benefit rules of Regs.
3) However, the inequality of fringe benefits at the level of the individual workers can be analyzed by focusing on the coverage rate of health insurance and pensions without knowing the monetary value of them due to data availability.
It would be a mistake to assume that attitudes to fringe benefits or welfare ran constant through time or by issue.
Such non-mandatory fringe benefits that took blows from the long recession also included maintenance costs of recreational resort facilities, entry fees for sports facilities and monetary gifts given at employees' weddings or funerals of employees' relatives.
He is concerned about being able to attract laborers for an upcoming road construction project and he wanted to add fringe benefits as opposed to giving raises.
A fringe benefit provided in connection with the performance of services is treated as compensation for the services.
For example, we review our fringe benefits package annually.