How to Calculate Fringe Benefits
Determine what types of wages are required by law., Locate a copy of your employment contract., Ask your employer for help., Determine the fringe benefits you receive (or give).
Step-by-Step Guide
-
Step 1: Determine what types of wages are required by law.
If a wage is required by law, it will not be considered a fringe benefit.
One easy way to identify fringe benefits is to eliminate the benefits you know are not fringe.
Examples of non-fringe benefits include:
Base wages and salaries; Payments to fund social security; Unemployment compensation; and Workers' compensation. -
Step 2: Locate a copy of your employment contract.
You will be able to begin finding fringe benefits by looking at a copy of your employment contract.
The contract will dictate what type benefits you receive from your employer.
For example, your employment contract may state your employer will pay for health insurance.
If your contract says this, you can include health insurance as a fringe benefit.
If your employer states you will have access to a company car, this would be a fringe benefit as well.
In another example, your employment contract may state your employer will pay you a salary of $75,000 per year.
This type of payment is required by law and will therefore not be considered a fringe benefit. , If you are unsure what fringe benefits you receive, and your employment contract is unclear, talk to your employer.
Sometimes employers do not include every fringe benefit in your contract for employment.
When you talk to your employer, ask them if there are benefit they offer or that you receive that are not included in your employment contract. , After you know the difference between fringe benefits and non-fringe benefits, and you know where to look to identify them, you can tally up all the fringe benefits you receive.
Examples of common fringe benefits include:
Meal plans; Health benefits; Achievement awards; Athletic facilities; Employee discounts; Stock options; Moving expense reimbursements; and Transportation benefits. -
Step 3: Ask your employer for help.
-
Step 4: Determine the fringe benefits you receive (or give).
Detailed Guide
If a wage is required by law, it will not be considered a fringe benefit.
One easy way to identify fringe benefits is to eliminate the benefits you know are not fringe.
Examples of non-fringe benefits include:
Base wages and salaries; Payments to fund social security; Unemployment compensation; and Workers' compensation.
You will be able to begin finding fringe benefits by looking at a copy of your employment contract.
The contract will dictate what type benefits you receive from your employer.
For example, your employment contract may state your employer will pay for health insurance.
If your contract says this, you can include health insurance as a fringe benefit.
If your employer states you will have access to a company car, this would be a fringe benefit as well.
In another example, your employment contract may state your employer will pay you a salary of $75,000 per year.
This type of payment is required by law and will therefore not be considered a fringe benefit. , If you are unsure what fringe benefits you receive, and your employment contract is unclear, talk to your employer.
Sometimes employers do not include every fringe benefit in your contract for employment.
When you talk to your employer, ask them if there are benefit they offer or that you receive that are not included in your employment contract. , After you know the difference between fringe benefits and non-fringe benefits, and you know where to look to identify them, you can tally up all the fringe benefits you receive.
Examples of common fringe benefits include:
Meal plans; Health benefits; Achievement awards; Athletic facilities; Employee discounts; Stock options; Moving expense reimbursements; and Transportation benefits.
About the Author
Alexis Evans
Professional writer focused on creating easy-to-follow lifestyle tutorials.
Rate This Guide
How helpful was this guide? Click to rate: