This document defines and provides examples of fringe benefits, which are non-wage compensation provided to employees in addition to their normal salary. Fringe benefits can include healthcare, retirement benefits, housing allowances, cheap loans, and private vehicle usage. They are considered taxable income in many countries. Fringe benefits are advantageous for both employers and employees - employers can attract and retain talent while employees gain security. However, fringe benefits also incur tax and administrative costs. The document outlines specific fringe benefits that are taxed in countries like India, the UK, US, and Australia.
2. WHAT IS FRINGE BENEFIT? A Fringe benefit is a benefit provided to you or an associate (for example, your spouse or children) through your employment. The employee may be a current, former or future employee.
3. Employee benefits can also called as fringe benefits, perquisites, perqs or perks or benefits in kind) are various non-wage compensations provided to employees in addition to their normal wages or salaries. where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a ‘salary sacrifice’ arrangement. in most countries, most kinds of employee benefits are taxable to at least some degree. e.g housing, health, dental, retirement benefits etc.
4. The term benefit includes any right (including any property right), privilege, service or facility.
20. IN INDIA ACCORDING TO FINANCE BILL (BUDGET 2005-06) As per the Finance Bill, fringe benefits shall be deemed to have been provided if the employer has incurred any expense or made any payment for the purposed of: 1.Entertainment 2.Festival celebrations 3.Gifts 4.Maintenance of guest house 5.Provision for hospitality 6.Employee welfare 7.Use of telephone 8.Scholarship to the children of the employees 9.Repair, running and maintenance of motor cars and aircraft
21. 10. Consumption of fuel other than industrial fuel11. Conference13. Use of health club, sports, and similar facilities14. Conveyance, tour and travel, including foreign travel expenses15. Hotel boarding and lodging.
22. WHO PAYS FRINGE BENEFIT TAX? Under the provision, fringe benefit tax is payable by an employer who is either an individual or a Hindu undivided family engaged in a business or profession; a company; a firm; an association of persons or a body of individuals; a local authority, a sole trader, or an artificial juridical person.
23. BENEFITS COVERED BY UNITED STATES They include relocation assistance, medical, prescription, vision and dental plans, health and dependent care flexible spending accounts, retirement benefits plans and possible other miscellaneous employee discounts (e.g. movies and theme park tickets wellness programs, discounted shopping, hotels and resorts and legal assistance plans.
27. VoluntaryBenefits It is the name given to a collection of benefits that employees choose to opt-in for and pay for personally. These a specially government backed schemes like Bike2Work and Childcare Vouchers like Sodexho and also specially arranged discount schemes for employees . Core Benefits is the term given to benefits which all staff enjoy, such as holiday, sick pay and sometimes flexible hours.
28. THANK YOU BY THIRUMAGAL PRIYA .S Vels Institute of Management Studies
