What Are Fringe Benefits for Employees?

When most people consider taking a certain job position, there are many things that they look at to weigh out that can help them determine if the job is good enough for them or not. One of the things to consider is the type of fringe benefits that come with a particular job, whether you found it through Fladger Associates or elsewhere. What exactly are fringe benefits, though?

What Are Fringe Benefits?

Fringe benefits are benefits in addition to an employee’s normal salary. While the word fringe may imply that these types of benefits are unique to uncommon, most fringe benefits are part of most employment plans companies offer their employees.

A fringe benefit is the type of payment for the level of performance of services that an employee is expected to give to a company. For instance, a fringe benefit can be a company car for employees to commute to and from work or drive during work hours. Some employers will even give a car to certain employees who need it for work, but they can also use it when they are off the clock.

Fringe benefits are designed to enhance the overall employment package to attract good, quality employees to a company. These fringe benefits are in addition to the employee’s base salary. Some fringe benefits are given to all employees of a company or business, while others may only be available for employees at higher levels within the company. Some fringe benefits are offered to award employees as compensation for costs that they have incurred related to their job or are created to enhance the workers’ overall job satisfaction. This helps companies retain good, quality employees since the employees will be happier it may not want to look elsewhere for a job.

Employers utilize fringe benefits to assist them in offering high-quality employment opportunities and then to motivate and retain those employees.

Top Points About Fringe Benefits

There are many advantages for a company to offer their employees fringe benefits. Some of these include:

• Fringe benefits assist companies with being able to recruit top-quality employees.
• Fringe benefits help companies and businesses motivate employees to do the best job possible.
• In many cases, employees look at the fringe benefits they have in place before seeking employment elsewhere. For example, suppose an employee does not have to pay a monthly cell phone bill because their company provides their cell phone. They can use it for both business and personal use. In that case, this may be a fringe benefit that will keep an employee at a company much longer than they would have been without that fringe benefit. in other words, fringe benefits help employers to retain good, top-notch employees that they need for their business to run and function properly.
• The companies with the most competition with other companies for employees with the most in-demand skills will normally offer their employees the best, most lavish fringe benefits to beat out the competition.

More About Fringe Benefits

The more common fringe benefits that are offered to employees include things like health insurance and life insurance. Most of the time, these benefits are not taxable, but other fringe benefits must be taxed at the fair market value.

Some very common fringe benefits are part of the basic things that are included in most hiring packages. These include life insurance policies, health insurance coverage, child care reimbursement, cafeteria subsidies or food reimbursement, employee stock options, low-interest rate loans, tuition assistance, and personal use of company vehicles.

Many employers offer their employees some fringe benefits that are less common and are designed to create a higher retention level for top-quality employees.

Some employers will offer their employees gym memberships or discounted gym memberships to keep them healthy and active. Healthy employees tend to be much more productive, which benefits the employee and the company. Some companies even offer their own fitness facilities, including volleyball courts, tennis courts, basketball courts, tracks, and even full-service gyms. Employees can enroll in yoga classes, Pilates, or a variety of other classes.

Some companies offer bus or taxi services to their employees to help them get to and from work without having to incur transportation costs. Some employers will even offer their employees a gourmet cafeteria to eat at during their lunch hour.

The younger employees may look at the amount of time they will have off work when they become a parent. For instance, most places offer 12 weeks for all parents, and some companies offer up to 20 weeks of paid time off for new mothers.

Some employers may offer lifetime achievement awards and awards for attendance at work and the highest productivity. Some achievement awards are exempt from being taxed, but they must meet certain criteria. This means the award must be worth less than $1,600 and cannot be given to the employee in cash, gift certificates, or gift cards. This type of award cannot be in the form of bonds, stocks, or other securities, or it must be taxed. Tickets to sporting events, theater tickets, amusement park tickets, lodging at hotels, meals while you travel, and vacations are exempt from being taxed when given as gifts.

Contact Us

By working with an employment specialist at Fladger Associates, you will be able to secure a job with a reputable company that offers many fringe benefits to their employees. The employment professionals at Fladger Associate will vet the potential companies ahead of time so you can apply for the jobs you are interested in. Contact us today for an appointment!