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Some of the most common examples of fringe benefits are health insurance, workers' compensation, retirement plans, and family and medical leave. Less common fringe benefits might include paid vacation, meal subsidization, commuter benefits, and more.
PW 26 - Statement of Employer Payments form.
To calculate an employee's fringe benefit rate, add up the cost of an employee's fringe benefits for the year (including payroll taxes paid) and divide it by the employee's annual wages or salary. Then, multiply the total by 100 to get the fringe benefit rate percentage.
Taxable fringe benefits include bonuses, company-provided vehicles, and group term life insurance (if coverage exceeds $50,000). The IRS views most fringe benefits as taxable compensation; employees would report them exactly as they would their standard taxable wages, displayed in Form W-2 or Form 1099-MISC.
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