Describe what a working condition fringe benefit is. How are taxed, and give an example of one.
A fringe benefit is an extra compensation the employer pays the employee beyond their agreed salary. A working condition fring benefit is the property and services the employer provides the employee so that employee can perform his or her job. All working condition fringe benefit are excluded from tax in the hands of the receiver. Example of working condition fringe benefit is employer-provided cell phone, provided primarily for noncompensatory business reasons.
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