Introduction to Fringe Benefits & Executive Perks

A fringe benefit is a form of pay for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work, or providing MP3 players to employees (usually in connection with an employee training program) that they can use for personal, as well as business, use.

Are Fringe Benefits Taxable?

Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. This section discusses the exclusions that apply to certain fringe benefits. Any benefit not specifically excluded under the rules, is taxable...