What is a Fringe Benefit?
Fringe benefits are benefits other than salaries and wages provided to an employee in respect of the employees
employment activities. An employee may be a current, future or former employee or an associate of the employee. This definition of employee extends to directors of companies and workers who perform duties for minimal or no salaries.
Employees may cash out their benefits by reimbursing the employer to negate any fringe benefits tax liability. This can be in cash or by a journal entry in the financial statements of the employer. Read more…