Fringe Benefits - Overview
Fringe benefits are taxable and included in a recipient's pay Unless the law specifically excludes it. Fringe Benefits are various non-wage compensations provided to employees in addition to their normal wages or salaries. The most common of these benefits include health, dental, accident and life insurance, daycare, tuition reimbursement, disability income protection, retirement benefits, sick leave, vacation pay, profit sharing, funding of education and adoption benefit plans. Normally, employer-provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits such as for golden parachute plans.
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