Fringe Benefits - Human Resources

What are Fringe Benefits?

Fringe benefits are forms of compensation provided in addition to your regular wages. These can include items such as employer-provided tuition assistance, wellness benefits (such as a PEIF pass), relocation expenses, and other non-cash or cash-equivalent perks. Fringe benefits are considered as taxable income under IRS guidelines.

How are Fringe Benefits Processed in Payroll?

• The benefit's value is added to your taxable income.
• This doesn't mean you are being charged for the benefit, it simply means the IRS requires NMU to report the value of specific benefits as part of your income so you can then be taxed accordingly.
• You receive the benefit at no cost or reduced cost depending on the benefit.
• The added amount will appear in your earnings details under the 'Federally Taxable Benefits' section of your stub so everything is transparent.
• Any tax calculations required are automatically handled by payroll. 

Example: Recreation Membership (PEIF pass)

If you receive a recreation membership through NMU:

• The value of the membership is added to payroll as a fringe benefit.
• This value increases your taxable wages but does not reduce your take-home pay by the cost of the membership itself, rather only by the amount of taxes assessed on the membership.
• The purpose is purely for compliance with tax reporting/withholding requirements.