Fringe Benefits Law and Legal Definition

Fringe benefits refer to various benefits other than the regular wages that an employee receives. It is an amount spent by employers for legally required and voluntary fringe benefit programs for employees. Federal and State legislations related to FICA, unemployment tax, workers' compensation, and state disability payments prescribe certain benefits that employees are legally eligible for. Benefits such as workmen’s compensation and various insurances are calculated on the employees’ wages. Employers can also initiate voluntary fringe benefits programs such as paid vacations.