A collection of various benefits provided by an employer for the employee, which are exempt from taxation as long as certain conditions are met. Any employee who receives taxable fringe benefits will have to include the fair market value of the benefit in their taxable income for the year, which will be subject to tax withholdings, and social security benefits payments. Fringe benefits commonly include health insurance, group term life coverage, education reimbursement, childcare and assistance reimbursement, cafeteria plans, employee discounts, personal use of a company owned vehicle and other similar benefits. Company Pension Scheme
A company pension scheme is a plan, fund or scheme which provides retirement income. It is important to shareholders and private companies. In Malaysia, companies used Employees Provident Funds and commonly known by the acronym EP which it is a Malaysian government agency under the Ministry of Finance. It is established in year 1951. The EPF is intended to help employees save a fraction of their salary in a lifetime banking scheme, to be used primarily as a retirement fund but also in the event that the employee is temporarily or no longer fit to work. The EPF also provides a framework for employers to meet legal and moral obligations to their employees. Sick Pay
Sick Pay is the payment of wages or salary to an employee when they are unable to attend work due to illness. There are two types of sick pay which are contractual sick pay and statutory sick pay. Contractual sick pay is the earnings that a contract of employment states that an employee is entitled to receive in the event of sickness resulting in absence from work. Statutory sick pay is the earnings that the law says most employees are entitled to receive if they are off sick from work. Moreover, most employees are entitled to sick pay in one form or another.If, a contract of employment provides that an employee will receive...
Please join StudyMode to read the full document