Fringe Benefits How Can They Be Managed

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Fringe Benefits—”How Can They Be Managed”
Fringe benefits involve compensations, which are made to any employee beyond his or her regular wage or salary (Warren 11). In most cases, they include education reimbursement, health insurance, and a company’s private car among others. There are, however, some employers who offer such benefits to all the employees while others are providing them as incentives to individual employees who make notable contributions to their places of work. They are usually not taxable for the employees but employers (Warren 14). The benefits end up being tax deductible primarily from the gross income of the employer.
The continuous rise in the cost of “fringe benefits” has become a significant concern for the employers. With the increased cost of living, fringe benefits end up representing a large amount of expense to the employers. It is even worse for the small employers who may end up losing much of their income. Healthcare benefits, for example, cannot be offered by an employer without substantial expense. Additionally, administrative fees are usually incurred for every type of fringe benefit provided as part of the benefit plan (Rosenbloom 35). The expenses, which cannot be avoided by employers who offer fringe benefits, make the concern to be legitimate.
Managing fringe benefits requires specific management measures to save employers from constant complaints. Employers can customize the fringe benefits to particular lifestyles of employees thus allowing the workers to select different benefits from a given cafeteria-style plan.

Some of the fringe benefits, such as insurance benefits and bonuses are usually considered as taxable income. The employees should, therefore, be made aware of specific benefits, which qualify for the fringe benefits tax to allow them to prepare accordingly (Turner 169). When fringe benefits are included under taxable income, the employers can get to save themselves from incurring the high costs that accompany such benefits.
Works Cited
Rosenbloom, Jerry S. The Handbook of Employee Benefits. Mcgraw-Hill, 2011, pp. 34-37.
Turner, Robert. “Fringe Benefits”. Urban Institute, 2018, https://www.urban.org/sites/default/files/publication/71096/1000532-Fringe-Benefits.PDF. Accessed 11 Nov 2018.
Warren, Nancy. Fringe Benefits. Harlequin Temptation, 2014, pp. 11-16.