Okay! So, fringe benefits are unnecessarily confusing but I’ll try and simplify it as best I can. 

Essentially. Fringe benefits are services that your employees receive from you (their employer) that you may be able to claim on your taxes. 

These services are taxable and need to be included on the recipient’s pay (unless law states it’s excluded).

With fringe benefits, no matter who performs or benefits from the service, the employer is always considered the provider and the employee is always considered the recipient. 

A common example that confuses people is when your employee’s spouses might benefit from things like stock options. Even though your employee isn’t directly benefiting, they are still considered the recipient. 

Another example is if an employer outsources another company to provide legal assistance. The employer would still be considered the official provider of the benefit. 

Okay? 

Employer = provider

Employee = recipient 

Need more help with and want to know what qualifies as a Fringe Benefit? 

The IRS website has a complete list, so if you’re not sure, check here. (it’s better to be safe than sorry!)