When applying and interviewing for jobs, you’re bound to come across the phrase “fringe benefits”. What you might be wondering, though, is: what exactly are fringe benefits?
Fringe benefits are a form of compensation that’s not included in a salary or wages. There are many different types of fringe benefits, with each acting as an incentive for an applicant to accept the job.
Interested in learning more? Then read on. Let’s demystify fringe benefits.
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Common Types of Fring Benefits
There are many different types of fringe benefits that you might be offered by an employer. Some of the more common fringe benefits include the following:
Health Insurance
In America, perhaps the most sought-after fringe benefit is health insurance. After all, the health insurance system in America is severely lacking. So, if you can find an employer who offers you good health insurance with a low premium and deductible, you’re much more likely to accept their job offer.
Retirement Plans
Another benefit that’s offered by employers is retirement plans. This includes everything from 401(k) to IRAs to SEPs and more. These plans often come with an employee match, meaning that, for every dollar you put into your retirement plan, your employer puts in the same amount of dollars.
Generally, employers will do this up to a certain percentage. For instance, they might match your year-long retirement contribution up to 8% of your total contribution.
Workers’ Compensation Insurance
Workers’ compensation insurance covers your salary or wages in the event that you’re injured on the job. If you’re working a manual labor job, it’s vital that you’re offered workers’ compensation.
Housing
In some cases, employers will provide housing to employees as a fringe benefit. This is most typically seen for short-term jobs, for instance, jobs where college students are working in distant cities for a few months.
Housing is one of the few fringe benefits that, when provided, forces employers to file fringe benefit tax returns. Read more about them now!
Paid Time Off
Paid time off is a fringe benefit as well. This includes everything from vacation days to sick days to family-related absences and more.
Additional Fringe Benefits
We’ve discussed some of the most common fringe benefits. However, there are many more. These include but aren’t limited to tuition reimbursement, free meals, moving expenses, commuting benefits, gym membership reimbursement, and stock options.
You might also receive things like work cell phones, work laptops, employee discounts, disability insurance, and work-from-home stipends.
Fringe Benefits Can Make the Difference
When it comes to accepting a job, fringe benefits can make the difference. After all, each additional fringe benefit is essentially adding money to your salary, just in a specific type of way. So, when deciding on taking a job, make sure to factor the value of fringe and voluntary benefits into your compensation.
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