Question

What is a fringe benefit?

a. a cash payment for casual work
b. a business other than sales or marketing
c. a payment other than wages or salaries
d. an accounting term meaning profits

Answer 1

C. A payment other than wages or salaries. A fringe benefit is given to the employees as a benefit or incentive on top of their basic salary. Fringe benefit may be in the form of company issued car, life or health insurance, luncheon vouchers or additional paid vacation.