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fringe benefit |
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fringe benefitPerk given to employees in addition to their wage or salary. Fringe benefits include company cars, health insurance, pensions, subsidized lunches, favourable loan facilities, or other kinds of rewards. Fringe benefits are usually taxable on the value of the benefit. However, companies may often try to keep ahead of the revenue authorities by devising innovative benefits not covered by existing tax legislation. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| Thus, there is no fringe benefit paid to the 2% shareholder, Sec. Beyond wages to lower-bracket children, consider compensation from a C corporation (or a proprietor to a spouse) to gain fringe benefit advantages. Under long-established law, when a corporate officer uses a company jet for his own personal reasons, unrelated to the business of the company, the use of that company plane is considered a fringe benefit and the officer has to recognize the value of that fringe benefit as additional compensation on his personal income tax return. |
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