{"id":2192,"date":"2021-12-24T21:00:26","date_gmt":"2021-12-24T15:30:26","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=2192"},"modified":"2024-05-10T15:27:53","modified_gmt":"2024-05-10T09:57:53","slug":"different-types-of-fringe-benefits","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2021\/12\/24\/different-types-of-fringe-benefits\/","title":{"rendered":"Different Types of Fringe Benefits"},"content":{"rendered":"

Fringe benefits are supplements on an employee\u2019s normal salary. They are the unspoken perks that can make a big difference to your standard of living. While employers and employees alike recognize the importance of salary and benefits, sometimes, employees do not recognize the significance of these benefits.<\/span><\/p>\n

Fringe benefits are commonly referred to as extras that employees receive in addition to their regular salaries. The term \u201cfringe benefit\u201d is a bit misleading in that it suggests these benefits are less than the employee\u2019s regular salary, when in fact, many of these benefits can be lucrative and sometimes very important. Some of the most common fringe benefits, such as time off and health insurance, are included in most employee compensation packages, so they are considered to be regular benefits.<\/span><\/p>\n

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Types of Fringe Benefits<\/span><\/h2>\n

Fringe benefits can be classified into two categories. Some benefits are required by law, while others are provided at the employer\u2019s choice.<\/span><\/p>\n

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    Fringe Benefits Required By Law<\/span><\/h3>\n<\/li>\n<\/ol>\n

    The U.S. Department of Labor’s Employment Standards Administration (ESA) details the benefits that employers must provide their employees, such as paid time off, health insurance, and maternity leave. Employees who work in the U.S. must be provided with certain benefits, such as sick leave and vacation leave. However, many people don’t realize that these benefits aren’t the only ones that employers must provide.<\/span><\/p>\n

    Here are a few mandatory fringe benefits that employers are obligated to provide:<\/span><\/p>\n

    Health Insurance<\/b><\/p>\n

    While health coverage has been a fringe benefit for most companies for a long time, the Patient Protection and Affordable Care Act of 2010 requires that all companies that employ more than 50 people must provide health insurance to their employees, or pay a fine. The law’s guidelines are complex, but employers must cover a number of basic benefits in order to make a plan compliant. These include a basic annual healthcare deductible of about $2,000, a yearly family maximum of $11,700 per year, and a maximum out-of-pocket expense of about $6,350 per year for a health plan.<\/span><\/p>\n

    Unemployment Insurance<\/b><\/p>\n

    Unemployment benefits are paid to those who lose their jobs as a result of involuntary job separation, such as layoffs, plant closures, and plant transfers. These benefits pay a portion of a person’s lost wages for up to 26 weeks, subject to some income limitations. The Federal Unemployment Tax Act (FUTA) is a tax that employers pay each year to the U.S. Department of Labor. It is designed to ensure that workers who are unemployed through no fault of their own can continue receiving unemployment benefits.<\/span><\/p>\n

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    1. \n

      Fringe Benefits Not Required By Law<\/span><\/h3>\n<\/li>\n<\/ol>\n

      The benefits that are provided by employers at their discretion are not required by law. Most of these benefits are taxable, however, with certain exceptions. A few of these fringe benefits are:<\/span><\/p>\n