What is a fringe benefit?

a business other than sales or marketing

an accounting term meaning profits

a payment to employees other than wages or salaries

a cash payment to employees for casual work

A fringe Benefit is a payment to employees other than wages or salaries. Fringe benefits are provided to both regular employees and minimum wage earners as an additional compensation. Fringe benefits are commonly tax-exempt which generally includes employee discounts, educational assistance, health insurance, personal use of the vehicles owned by the company, reimbursement of childcare and assistance and others.