Fringe Benefits

Topics: Employee benefit, Wage, Taxation in the United States Pages: 3 (604 words) Published: January 9, 2013
1.What do you mean by fringe benefits? Give any two examples? Ans. A Different offers a company groups together for an employee are collectively known as a fringe benefits packages. B An employment benefit given in addition to one's wages or salary, or Benefits, other than wages or salary, provided by an employer for employees Any nonwage payment or benefit granted to employees by employers. C A payment to a worker in addition to salary or wages. It may take the form of cash, goods, or services, and may include such items as health insurance, pension plans, vacation time, disability income and paid vacations. D It it the Compensation provided by the employer to the employee at no charge that is above and beyond salary or wage.

E Employee benefits and benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Examples of these benefits include:

housing (employer-provided or employer-paid),
group insurance (health, dental, life etc.),
disability income protection,
retirement benefits,
daycare & tuition paymetns,
sick leave,
vacation (paid and non-paid),
social security,
company cars,
stock options,
expense accounts.

profit sharing,
personal use of a company owned vehicle and other similar benefits funding of education, and other specialized benefits.

Purpose of Benefits
The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization.

Definition of 'Fringe Benefits'
A collection of various benefits provided by an employer, which are exempt(free from) from taxation as long as certain conditions are met. Any employee who receives taxable fringe benefits will have to include the fair(reasonable) market value of the benefit in their taxable income for the year, which will be taxed with social...
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