Put simply, a fringe benefit is compensation an employee receives that isn’t part of their base salary or structured commission or bonus incentive. So, a fringe benefit could include things like clothes and equipment, a one-off award or a housing/relocation stipend. A company car is a fringe benefit too—even if the car must be returned when the employee leaves the company.
Health benefits, a 401(k) and life insurance are also considered fringe benefits. Again, in most instances, any compensation that is above and beyond an employee’s base, bonus or commission salary could be considered a fringe benefit.
Your subscription to our Lexis Legal Advantage Online Community is confirmed !