Fringe Benefits

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DEFINITION of 'Fringe Benefits'

A collection of various benefits provided by an employer, 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.

INVESTOPEDIA EXPLAINS 'Fringe Benefits'

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.

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  4. Are part-time employees eligible for fringe benefits?

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  5. How are an employee's fringe benefits taxed?

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  6. What are some examples of common fringe benefits?

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  7. What incentives does an employer have in offering fringe benefits?

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  8. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ...
  9. Are fringe benefits deductible for the employer?

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  10. Does everyone have to file a federal tax return?

    This may come as a surprise to many individuals, but not everyone needs to file a federal tax return. According to the IRS, ...
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