Can the contractor pay the employees their fringe benefits in cash instead of furnishing the required fringe benefits?
Yes. Fringe benefit obligations may be discharged by paying to the employee on his regular payday, in addition to the monetary wage required, a cash amount per hour in lieu of the specified fringe benefits, provided such amount is equivalent to the cost of the fringe benefits required. Records are kept separately showing the amounts to be paid for fringe benefits.
Related Questions
- Id like to use my funding to pay a graduate student to assist me during the summer: do I include fringe benefits for the students hourly pay?
- Can the contractor pay the employees their fringe benefits in cash instead of furnishing the required fringe benefits?
- How can a plan be mandatory when employees have to pay for a portion of the benefits?