Fringe Benefits

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Fringe Benefits

• Harriet ORourke and Joanne Bruce

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Fringe Benefits

• Fringe benefits are rewards given to employees as
  an extra to their wage or salary.
• This can be an extra that is awarded with the job
  on a permanent basis, or sometimes a reward for a
  particular achievement.
• Fringe benefits are benefits that are given in
  kind NOT money.

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Benefits in Kind

• These are extras which are awarded in the form of
  an item or service.
• These can be car, health care,discount,
  accommodation, cheaper food and drink.

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Advantages

• No additional tax is paid on fringe benefits as
  they do not involve money.
• They can be used to encourage the employee to
  work harder.

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Disadvantages

• The employee has no choice on how they are spent.
• Benefits are lost when an employee leaves the
  job, sometimes causing hardship.

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For Example

• In School, prefects get taken to Alton Towers
  at the end of the Year as a reward for their hard
  work throughout the year.

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Another example

• A farmer may not earn much in money, but
  sometimes they get given extras such as housing
  etc.

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Thanks for Watching Bye!