Explain Different Types of Fringe Benefits in Detail

Tuition assistance or reimbursement for employees andor their families. A Philanthropy b Psychology 2 Mention two types of Employee Welfare.

Fringe Benefit

As per the Payment of Gratuity Act 1972 the gratuity is payable to all the employees who render a.

. Means affection for mankind. Car parking fringe benefits. They may include tuition assistance flexible medical or child-care spending accounts pre-tax accounts to pay qualified expenses other child-care benefits and non-production bonuses bonuses not tied to performance.

Personal use of company car. Company holidays personal days sick leave and other time off from work. When food drink or recreation is entertainment.

Car leasing fringe benefits. Working out the taxable value of a car fringe benefit. Fringe benefits are benefits in addition to an employees wages.

Types of Rewards There are a number of ways to classify rewards. For 2022 the standard mileage rate is 585 cents per mile. Benefits that are required by law Medical insurance Life insurance Retirement plans Disability insurance Fringe benefits Lets list the different types of employee benefits and discuss each in detail.

The fringe benefits are classified under four heads as given here under. Retirement and pension plan contributions. Payments made by employers to cover those expenses which the employees would pay for themselves if the employer does not make the payment.

Three of the more typical dichotomies are. Fringe benefits are not required by law and vary from employer to employer. The compensation is usually calculated by finding out territory volume.

Safety and health 5. Fringe benefits examples include. The fringe benefits are classified under four heads as given here under.

Exempt benefits and entertainment. Medical insurance life insurance retirement benefits fringe benefits paid time off social security and other specialized benefits. Welfare and recreational facilities 8.

This type of compensation is well-suited for employees who work in a team-based culture. These categories are far from being mutually exclusive. Intrinsic versus extrinsic rewards financial versus non financial rewards and performance-based versus membership based rewards.

These are the various benefits at the fringe of the wage. Benefits that are required by law. So any monetary benefit an employer offers in exchange for an employees services that does not include their salary is a fringe benefit.

Benefits under this head include unemployment insurance technological adjustment pay leave travel pay overtime pay level for negotiation leave for maternity leave for grievances holidays cost of living bonus call-back. Payment for time not worked. Most often the employees working under the.

Fringe benefits tax - exempt motor vehicles. Fringe benefits are a variety of non-cash payments are used to attract and retain talented employees. Fringe benefits tax FBT Types of fringe benefits.

As a quick refresher IRS Publication 15-B the Employers Tax Guide to Fringe Benefits defines a fringe benefit as a form of pay for the performance of services. Educational facilities to employees and their children. Insurance coverage may include employer-paid life insurance health insurance and short or long-term disability insurance.

Management provides these benefits to motivate the employees and to meet their life time contingencies. This amount must be included in the employees wages or reimbursed by the employee. Discounts on company products and services.

TYPES OF FRINGE BENEFITS. Benefits under this head include unemployment insurance technological adjustment pay leave travel pay overtime pay level for negotiation leave for maternity leave for grievances holidays cost of living bonus call-back pay lay-off. Personal use is any use of the vehicle other than use in your trade or business.

For eg salary of domestic servant school fees of children loans etc The value of any other fringe benefit. The term employee benefits inculcate the different kinds of indirect recompense provided to the employees apart from their normal salary. Some of the most popular types of fringe benefits are discussed below.

Insurance coverage is perhaps the most common fringe benefit provided to employees though the structure of how insurance is paid for has changed in recent years. Non-taxable fringe benefits include travel allowance computer or laptop provided by the company for official use refreshment provided by employer during office hours provision of medical aid use of health club sports club telephone lines interest free salary loan provided by employer to employees contribution to provident fund by. Territory Volume Compensation Plans.

A Belongingness b Togetherness c 4. An employer is the provider of a fringe benefit even if a third party provides the actual benefit. Fringe benefits are taxable unless they are specifically excluded from an employees income.

However successful salespeople tend to make a lot of money with commission than with a salary plus commission job. The various kinds of employee benefits packages fall into six main categories. Old age benefit 6.

C Philosophy Bitterness B MCQobjectives Attempt any 3 out of 5. Organizations provide a variety of fringe benefits. For Employment Security.

You can use the cents-per-mile rule if either of the following requirements is met. 3 Fringe benefits create a sense of among employees. With a view to develop social security feeling after retirement and during old age the following statutory fringe benefits are applicable to the employees.

Employee benefits include benefits from various sources ie. Explain different types of Fringe Benefit.

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