Hi Everyone Could anyone explain to me what fringe benefits are ? Also what FBT is and how it is calculated and on what is it calculated? Thanks Villis
From India, New Delhi
6From India, New Delhi
Employee benefit/Frindge Benefit.benefits in kind also called perquisites, perqs or perks are various non-wage compensations provided to Employees other than salary.
They can be like::housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits
Basic thing or principle or advantage behind it is as following
There are a number of advantages to employee benefits for both employer and employee.
Employer advantages
Helps attract and retain better qualified employees.
Provides high risk coverage at low costs easing the company's financial burden.
Improves efficiency and productivity as employees are assured of security for themselves and their families.
Premiums are tax deductible as corporation expense, which means savings with quality coverage.
Employee advantages
Peace of mind leading to better productivity as employees are assured of provision for themselves and families in any mishap.
Employees with personal life insurance enjoy additional protection
Confidence in company's EB schemes boost staff morale and pride in company
Employees enjoy cheaper rates negotiated through their employer than they could obtain as an individual
From India, Indore
They can be like::housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits
Basic thing or principle or advantage behind it is as following
There are a number of advantages to employee benefits for both employer and employee.
Employer advantages
Helps attract and retain better qualified employees.
Provides high risk coverage at low costs easing the company's financial burden.
Improves efficiency and productivity as employees are assured of security for themselves and their families.
Premiums are tax deductible as corporation expense, which means savings with quality coverage.
Employee advantages
Peace of mind leading to better productivity as employees are assured of provision for themselves and families in any mishap.
Employees with personal life insurance enjoy additional protection
Confidence in company's EB schemes boost staff morale and pride in company
Employees enjoy cheaper rates negotiated through their employer than they could obtain as an individual
From India, Indore
Dear Villis,
Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Others can be significantly greater, and more rare. Key executives in large companies might also enjoy fringe benefits like use of time-share condominiums, paid continuing education, use of a company car, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation.
Sometimes the fringe benefits turn out to be greatly needed. For example, the rising cost of private health insurance often makes obtaining a job with a good health plan highly desirable. Programs like 401ks can help employees save money for the future. Where job compensation is not commensurate with money needed to live comfortably, housing allowances, or company housing can often make the difference between being able to take a job and looking elsewhere.
Some companies also pay fringe benefits for those who work night or swing shifts. These fringe benefits may be in the nature of a 10—30% increase of base pay for working a non-standard shift. This is called a shift differential and is quite common in the medical field and in manufacturing.
From India, Calicut
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Flexi Benefits Plan.doc