{"id":2188,"date":"2021-12-22T21:00:38","date_gmt":"2021-12-22T15:30:38","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=2188"},"modified":"2024-03-23T10:07:57","modified_gmt":"2024-03-23T04:37:57","slug":"what-are-fringe-benefits","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2021\/12\/22\/what-are-fringe-benefits\/","title":{"rendered":"What Are Fringe Benefits?"},"content":{"rendered":"

Fringe benefits are employee benefits that are not part of the regular pay, so they are not included in the traditional payroll figures. These are the perks that employees receive as part of their compensation package. And, since these benefits are non-deferred compensation, they are non-taxable. The term “fringe benefits” is used to distinguish non-deferred compensation from deferred compensation. Fringe benefits may include, for example, employer-paid life insurance, accident and health insurance, disability insurance, health care, medical care, prescription drugs, dental care, vision care, legal services, parking, fitness class, grooming, childcare, tuition reimbursement, and more.\u00a0<\/span><\/p>\n

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Understanding Fringe Benefits<\/span><\/h2>\n

Fringe benefits are a significant part of a company’s compensation package for its employees. The amount of compensation a company pays an employee often depends on the level of the employee’s position within the company. In addition, there are different types of fringe benefits. Depending on the type of fringe benefits, an employee may receive an allotment of money or may receive items or services in exchange for his\/her work.<\/span><\/p>\n

The term “fringe benefits” has been used for years to describe any benefits to an employee that are not well defined in the employment contract. These benefits are usually synonymous with what is known as “un-capped” benefits, which are benefits that are not limited in quantity but are usually tied to the employee’s length of service with the company.<\/span><\/p>\n

Fringe benefits that are offered to employees include:<\/span><\/p>\n