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Employer Based Fringe
Benefits
Fringe benefits are benefits over and
above your salary provided by your
employer. They include accident and
health plans or group-term life
insurance.
Fringe benefits are compensations made
to an employee beyond the regular
benefit of being paid for their work.
Some fringe benefits
are fairly standard, such as offering a
few days of sick time or paid vacation
time. Others can be significantly
greater like use of time-share
condominiums, paid continuing education,
use of a company jet, use of a company
credit card, discounted or free health
club memberships, and paid vacations.
Common fringe benefits include cafeteria
plans, child care expenses, education
assistance, group-term life insurance,
medical coverage and incentive stock
options.
Employer-provided fringe benefits are
often fully or partially nontaxable.
Publication 15-B, Employer's Tax
Guide to Fringe
Benefits
The Tax Benefit
A fringe benefit that meets specified
conditions may be fully or partially
nontaxable if it meets IRS requirements
Under US Internal Revenue
Codes, “de minimis fringe” benefits
provided by the employer can be excluded
from the employee’s gross income.
De minimis fringe” means
any property or service - the value of
which is so small as to make accounting
for it unreasonable or administratively
impracticable.
Common
Employee Fringe Benefits
- Child
Care Expenses
- Driving
a Company-provided Car
- De
Minimis Fringe Benefits
- Employer-provided Retirement Plans
- Educational Assistance
- Employee
Discounts for Property or Services
- Employee
Stock Purchase Plans
- Free
Parking
- Group-term Life Insurance
- Health Savings Accounts & Cafeteria
Plans
- Incentive Stock Options
- Interest-free or Bargain-rate Loans
- Meals &
Lodging
- Medical
& Dental Coverage
- No-cost
Services
- Outplacement Services
- Stock
Bonuses or Bargain Purchases
- Transit
Passes
- Working-condition
Fringe Benefits
Fringe benefits like
health insurance contribute to the well
being of employees. Fringe benefits like
sick or vacation time tend to be fairly
standard as well, even if an employee
does not work full time. Employees
entering higher-level positions may be
offered greater fringe benefits as
incentive to join a company.
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