Fringe benefits are non-salary compensation provided by employers to their employees, in addition to their regular salaries. These benefits can include things like health insurance, retirement plans, paid time off, wellness programs, and more. Offering attractive fringe benefits can help a company to attract and retain top talent, and can also improve employee satisfaction and productivity.
In order to offer fringe benefits that are not taxed by the government, employers need to follow certain rules and guidelines set forth by the IRS. One way to do this is by offering benefits through a qualified plan, such as a 401(k) or health savings account (HSA). These plans are regulated by the government and offer tax advantages to both employers and employees.
Another way to provide tax-free fringe benefits is to offer them as "employee discounts." For example, your company could offer employees a discount on gym memberships or other services. As long as the discount is not greater than the employer's cost for providing the service, it can be considered a tax-free fringe benefit.
It's important to note that the tax laws surrounding fringe benefits can be complex, and it's always a good idea to consult with a tax professional or HR expert when designing an employee benefits package.