What are 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.

Benefits other than salaries like, car, bonus, allowances etc

Financial

•       Direct

–      wages, salaries, commissions, bonuses

•       Indirect

–      insurance plans

•       life, health, dental, disability

–      social assistance benefits

•       retirement plans, social security, workers’ comp

–      paid absences

•       vacations, holidays, sick leave

Non-Financial

•       The Job

–      interesting, challenging, responsible

–      opportunity for recognition, advancement

–      feeling of achievement

•       Job Environment

–      policies, supervision, co-workers, status symbols, working conditions, flextime, compressed work week, job sharing, telecommuting, flexible benefits programs