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childbenefita xml

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Employee benefits (also called fringe benefits, perquisites, or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit this is generally referred to as a 'salary sacrifice' arrangement.

Generally non-cash benefits received by an employee are referred to as 'fringe benefits'. Fringe Benefits Tax (FBT) applies to most, although not all, fringe benefits. Most fringe benefits are also reported on employee payment summaries for inclusion on personal income tax returns that must be lodged annually. The rationale behind FBT is that it helps restore equity and fairness to those employees who do not receive such benefits.

Normally, employer provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule would include executive benefits (e.g. golden handshake and golden parachute plans) which usually exceed the IRS maximum allowed and therefore, the executive would have to pay income tax for the excess amount.

Employee benefits in the United States could include relocation assistance, health and dental plans; retirement benefit plans; group-term life and long term care insurance plans, legal assistance plans, adoption assistance, child care benefits and possibly other miscellaneous employee discounts (e.g. movies and theme park tickets, hotels and resorts, and so on).

The term perks is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority.

In the United States there is Unemployment Insurance, a federal program, established by the Social Security Act of 1935, and administered by individual states and territories. The reason for leaving your last job must be "lack of work" or a determination of your eligibility for benefits will be issued.

Fringe benefits can include, but are not limited to: group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid (esp. teaching) and non-paid), social security, profit sharing, funding of education and other specialized benefits.

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