What Is a Fringe Benefit Package?

Company childcare services may be offered as a fringe benefit.

A fringe benefits package is separate from an employee's salary package and is made up of primarily non-monetary job perks. Many companies offer a standard fringe benefits package to new hires, but these may be negotiable depending on the company and the potential hire.

Features

Fringe benefit packages can include various types of insurance, such as health, life, disability and dental. They can also include retirement plans, vacation time and holidays, relocation packages, childcare services and a flexible work schedule.

Importance

Fringe benefit packages can sway a potential hire to work at a company where the salary may be lower than desired or even lower than another company's offer. A potential employee can negotiate to receive certain perks, such as several weeks paid vacation, in lieu of a higher salary.

Qualifications

Fringe benefits packages are typically offered in some form to full-time, permanent employees. Part-time or temporary workers may also receive one, but it is likely to be more basic and include only certain types of insurance and limited vacation time.

References

• University of Wisconsin Eau Claire: FAQs About Fringe Benefits
• Internal Revenue Service: Employer's Tax Guide to Fringe Benefits