What are fringe benefits?
Fringe Benefits are monies paid over and above the basic trade wage rate for a given area. Fringe benefits can include apprenticeship and training, health and welfare, insurance, vacations, and pensions paid generally, in the locality in which the work is being performed, to employees engaged in work of a similar character on public works projects. The Federal Employee Retirement Income Security Act (ERISA) sets standards for administering certain fringe benefit plans. This law requires employers or plan administrators to: 1. Set up an account in each worker’s name. 2. Make promised contributions. 3. Make contributions at least every 90 days. 4. Provide a Summary Annual Report. 5. Provide copies of plan documents that tell workers how to file a claim for benefits, the requirements to qualify for participation and the worker’s rights under the law.
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 jet, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation. Most people who work full time in the US could probably not get along without fringe benefits. For example, offering health insurance to employees, where the employer pays part of the insurance is a typical example of fringe benefits. According to the laws in some states, companies of a certain size must offer health insurance with some sharing of payment at least to a full-time employee. Some companies avoid this by employing more part-time workers. Most c
