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fringe benefit |
Also found in: Dictionary/thesaurus, Medical, Wikipedia, Hutchinson | 0.01 sec. |
fringe benefitAny nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. Employers' payments for fringe benefits are included in employee-compensation costs and therefore are not usually taxed. If the cost of fringe benefits were paid directly as wages, the worker would pay taxes on this amount and therefore have less to spend when purchasing equivalent benefits independently. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Or in some cases, a C corporation, kept lean with only business operating assets, can add further tax efficiencies by allowing a greater array of tax-deductible fringe benefits. For certain fringe benefits (such as health insurance premiums) paid by the S corporation, the entity is treated as a partnership; any shareholder who owns more than 2% of the S stock will be treated as a partner of such partnership under Sec. The labor agreement states that fringe benefits provided to the support staff will be the same as the fringe benefits provided to the teachers. |
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Fringe benefits
