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Lecture 2b Fringe Benefits
Lecture 2b Fringe Benefits
FRINGE BENEFITS- any good, service or other benefit furnished or granted by an employer, in cash or in kind, in
addition to basic salary to an individual employee.
Examples: Examples:
a. De Minimis, non-taxable if not exceeding the
a. Housing
limits, however, any excess of de minimis over
b. Expense Accounts
the statutory limits is added to the “Other
c. Vehicle of any kind
Bonuses” category subject to P 90,000 limit
d. Household personnel
taxable under Normal Tax
e. Interest
f. Membership fees b. those which are required and necessary to the
business of the employer
g. Expense for Foreign Travel
c. those which are for the convenience or
h. Holiday and vacation expenses
advantage of the employer
i. Educational assistance
j. Life or health insurance and other non- life
insurance premium in excess of what the law
allows
Monetary Values
If Cash, the face amount or value received.
If Property, wherein the ownership is transferred to the employee, the basis shall be the FMV,
Zonal Value, or Assessed Value, whichever is the HIGHEST.
*Managerial Employee
Those who are vested with powers or prerogatives to lay down and execute management policies and/or
to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. (Labor Code of The
Philippines)
Supervisory Employee
Those who, in the interest of the employer, effectively recommend such managerial actions if the exercise
of such authority is not merely routinary or clerical in nature but require use of independent judgment.
(Labor Code of The Philippines)
De Minimis Benefits