Page 112 - Appreciating Organization's Biggest Assets

families are given access to medical for services supplied by a person,
benefits. it is taxed not only when it is given

Small organizations that are directly from the employer to the
unable to build hospitals offer employee but also when it is given
medical services through nearby indirectly, either by third parties or
hospitals and physicians. They to third parties.
occasionally offer reimbursement Although they have the same
for medical costs that the employee nature as regular income, fringe
is responsible for. benefits have some characteristics
7. Welfare and Recreational that call for regulation that aims to:
facilities: • ensure that there are no

Canteens, consumer shops, questions about the taxation of
credit societies, housing, legal fringe benefits,
assistance, employee counselling, • Specify when and how
welfare organizations, vacation much benefits should be considered
houses, educational facilities, fringe benefits,
transportation, picnics, and • Calculate their value, and
celebrations are just a few of these
benefits. • Specify how the Final
Settlement System should apply to
Analysis of the study fringe benefits.
Any advantage given or Once fringe benefits are subject to
assumed to be given as a result of the same taxation as regular salary
employment or office is referred to and wages, a recruiter who imposes
as a “fringe benefit.” Article 4(1) a cost in offering fringe benefits may
(b) of the Income Tax Act serves deduct that cost from his income to
as the foundation for taxing fringe the same extent that he would be
benefits. This section applies to all eligible for a deduction under the
benefits or profits derived from Income Tax Acts’ standard rules
employment or office, whether they had he paid regular wages instead.
are paid in cash or in kind, received in
accordance with the regular terms of Several studies have been done
the employment contract, or come on a national and worldwide level
in the form of a special or ex gratia about the significance of benefit
allowance. Similar to the earlier plans, fringe benefits, and ways
example, when a payment or other to raise employee happiness in
benefit is given as compensation order to retain talented individuals

112