Fringe Benefit
Description and Definition of Fringe Benefit
Employee benefits such as health insurance, life insurance, pension plans, dental insurance, vision care, and group legal plans. Most fringe benefits are deductible by your employer and tax free to you. The cost of $50,000 of life insurance is a tax-free fringe benefit. However, if your employer pays for more than $50,000 of life insurance your employer must include the cost of providing the excess life insurance with your income on your Form W-2.
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