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 ?
For a given pay package, if workers appreciate company's welfarism when they are paid fringe benefits as compared to direct wages it is expected that as a result of joint satisfaction and team work labour productivity will increase.
8226; Review what special fringe benefits that the IRS consider non-taxable 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.
If the cost of these items is over $5,000 then a fringe benefit arises.
The S corporation can deduct the cost of fringe benefits for MTTPSEs in determining its taxable income.
Examples include no-additional-cost and working-condition fringe benefits.
It is uncertain whether its existence has restrained the development of new forms of nonstatutory fringe benefits.
44 euros an hour, with fringe benefits accounting for 28%.
Observation: This Chief Counsel Advice rationale also may apply to other situations where an S corporation provides taxable, properly valued fringe benefits to employee-shareholders.
As a volunteer for the AICPA Tax Division, Walker has chaired the Fringe Benefits Task Force, the Domestic Relations Task Force and the Tax Determination Subcommittee.
Similarly, inequality in the distribution of fringe benefits has also been studied.