Fringe benefits

Fringe benefits are benefits given to employees by their employer. Fringe benefits are in addition to salaries and wages, and can be a key factor in the retention of quality employees. Examples of fringe benefits are:

  • Disability insurance

  • Free dry cleaning

  • Free meals

  • Health insurance

  • Life insurance

  • Pension plan contributions

  • Reimbursement of child care fees

  • Reimbursement of educational fees

  • Reimbursement of gym fees

  • Use of a company vehicle

  • Vacation pay

Depending on the type of fringe benefit, it may be tax exempt, in which case employees pay no income taxes for the benefit received. In other cases, they must pay income taxes on the fair value of the benefit received.

Related Courses

Human Resources Education Bundle 
Human Resources Guidebook 
Payroll Management