Question

Briefly describe two taxable fringe benefits and two non-taxable fringe benefits that employers frequently offer to their full-time employees

Answer 1

Taxable fringe Benefits Employer Frequently offer to their Full - time Employees

Taxable benefits (1) Vacation Trips (2) Gifts Crads are taxable.

Other taxable benefits include meals, tickets to events, and membership to clubs.

These types of benefits generally taxed at fair market value, which is what the employee would pay for the benefit it they were to get it on their own.

Major Disadvantge of Taxable benefit is employee and employer will have to pay various taxes on the fair market value of the benefit.

However, because they are considered taxable income, taxable benfit also come with advantage that they can boost future social security benefits for many workers.

Thta's because Social Security benefits are based on income, and their income is higher with taxable benfits included.

Non taxable fringe benefits employer generally offer to employee

(1) Insurance Coverage

The most common frienge benefits offered to employyes include combination of insurance covergae. Typically, employer offer up to, $50,000of group life insurance, short term & long term disability coverage, and health insurance options.

(2) Retirement plan contribution

One of the most important fringe benefits an employer can offer is contribution to an employee's retiremnet plan. Some compnaies offer matches on employee 401(k) paycheck deferrals, while other make qualified contribution to retiremnt plans without requiring employees to make contribution themselves.

Thses plans can be powerful tools in saving for the long term and provide compensation to employees above and beyond the salaries.