Fringe Benefits
Fringe benefits are benefits granted to the employees by the employer apart from their salaries. If salary is the fundamental part an employee's compensation, all the extra benefits such as health insurance, sick pay, vacation pay are the fringe benefits. Often, they are offered as non-cash compensation to the employee. Popularly known as 'job perksb' employers generally offer it to recruit and retain top quality employees. In fact, fringe benefits play an important role in keeping the employee motivated to be productive and perform high quality work. When it comes to the employees, it is a great way to save more money as the employer takes over some of their regular expenses. In some cases, the fringe benefits are exempt from taxes as well.
Types of fringe benefits
A wide range of fringe benefits are offered by many employers to their employees apart from salaries. Employers pay for such perks and therefore they cost the employers. Hence, on the books of the employers, fringe benefits are considered as a portion of the employees' salaries even if the benefits may not be in the form on money. The type of fringe benefits provided to the employee depends on the employer type and the value the position of the employee delivers to the employer.
Examples of some popular fringe benefits
Although there is a diverse range of fringe benefits, they differ from one to another depending on the employer. Some of the most popular examples of fringe benefits include insurance coverage, education assistance, child care assistance, dependent assistance, and retirement plan compensation.
Are fringe benefits taxable?
It depends on the type of fringe benefit offered, and the laws pertaining to tax at that time. The IRS has published an Employer's guide to fringe benefits. However, it is a great source of information for employees as well.
This training program will help attendees distinguish between supplemental wage payments and regular wage payments and help them identify wage payments that are neither supplemental nor regular. It will also detail methods used to compute withholding on supplemental pay including examples.
This training program will discuss the taxation of different types of fringe benefits related to transportation including the personal use of a company car, proper accounting and taxation of auto allowances, personal use of a company aircraft, and the IRS 132 fringe benefits such as parking and mass transit passes.
This fringe benefit related webinar focuses on regulations and compliance requirements for taxation and reporting of Fringe Benefits. Highlights also include payroll's responsibilities for proper record keeping and record retention.
