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Glossary Definition

What are Fringe Benefits?

A fringe benefit is a form of pay for the performance of services. An employer can offer various types of employee fringe benefits that are eligible for the fringe benefits tax deduction. Examples include:

• Disability insurance that is taxable but exempt from FICA and unemployment
• Group term life insurance up to $50K for regular non-shareholder employees
• Working condition benefits, such as a corporate car and smartphone
• Job-related education
• De minimis benefits, such as the use of a company copy machine, small gifts, occasional parties and picnics, occasional theater or sporting events and benefits from points and miles programs.

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