For tax purposes, a fringe benefit is a form of compensation other than monetary. Some benefits are taxable and must be included in the recipientâ€™s pay unless the law specifically excludes them. The IRS list of fringe benefits is extensive and includes the following categories:
Accident and Health Benefits, Achievement Awards, Adoption Assistance, Athletic Facilities, Dependent Care Assistance , Educational Assistance , Employee Discounts,
Employee Stock Options, Employer-Provided Cell Phones, Group-Term Life Insurance Coverage, Health Savings Accounts, Lodging on Business Premises, Meals,
Moving Expense Reimbursements, Retirement Planning Services, Transportation (Commuting) Benefits , Tuition Reduction, and Working Condition Benefits
Some employers offer cafeteria plans, that is a written plan that allows employees to choose between receiving cash or a taxable benefit. Cafeteria plans may offer
accident and health benefits, adoption assistance, dependent care assistance, group-term life insurance coverage, and health savings accounts (HSAâ€™s). A cafeteria plan cannot include benefits such as educational assistance, athletic facilities, retirement planning services, and other common benefits some businesses may provide.