What Are Fringe Benefits?

Or, you can choose to deduct, collect and pay taxes once a year. Although fringe benefits are typically taxable, some are nontaxable. Taxable fringe benefits can include personal use of a company car, bonus pay, and paid time off.

Employers can use a fringe benefit rate to examine the total cost of labor per employee. The fringe rate shows you how much an employee actually costs your business beyond their base wages. For calculating the fringe benefits you want to offer to your employees, create a list of all your employees. It helps you identify how many employees will benefit from the fringe benefits.