You may have heard of some of your friends and family obtaining education reimbursement from work, driving company vehicles, receiving childcare and assistance reimbursement. Well, these are all examples of fringe benefits. Some of the more classic or standard fringe benefits include, healthcare plans, cafeteria plans, group term life coverage, paid vacation, and employee discounts.
When a company groups different offers of benefits together, it is called a fringe benefit package. Benefit packages usually get better over time with an employee’s longevity of loyalty to the company or an increase in the employee’s skills and knowledge. This can increase or decrease over time with the company as changes are made, employees are fired, hired or laid off or if the company undergoes a major shift in power or management. Although it’s rare, most benefits do increase with time for the majority of those within the plan. (Check with your specific company about the rules and regulations that are associated with your company).
Some of these type of perks or employee benefits have been around so long that they’re not only standard but expected. These are the perks considered essential to getting along socioeconomically. These are the things such as sick time, vacation time, Christmas bonuses, and medical coverage. Pension plans can also fall under this category at some point if it’s built into the plan for employees and includes other benefits. An important thing concerning these kinds of offers in America is that if the employer’s payment is required by law (prevailing wage), then the compensation is not technically a fringe benefit. Therefore, depending on location and differing regulations therein, some employers cannot count certain standard perks as fringe benefits while others can.