Legal Definitions - fringe benefit

A fringe benefit is an extra benefit that an employee receives in addition to their regular wages. These benefits can be tax-exempt if certain conditions are met. The Internal Revenue Code's Section 132 lists all the fringe benefits that are excluded from taxable income and the conditions for the exclusion.

• Health insurance
• Life insurance
• Employee discounts
• Qualified parking
• On-premises athletic facilities
• Certain meal plans

These examples illustrate how fringe benefits can be different from regular wages. For instance, an employee may receive health insurance coverage as a fringe benefit, which is not part of their regular salary. Similarly, an employee may receive discounts on products or services offered by their employer, which is also a fringe benefit.