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:
Free dry cleaning
Pension plan contributions
Reimbursement of child care fees
Reimbursement of educational fees
Reimbursement of gym fees
Use of a company vehicle
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.