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    Fringe Benefits Definition

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    Theodore Dolar
    Fringe benefits are goods, services, or other benefits provided to employees in addition to basic salaries. This includes housing, vehicles, household help, education assistance, and health or life insurance premiums beyond what is legally required. De minimis benefits are small value facilities and privileges offered to promote employee health, goodwill, and efficiency. Certain de minimis benefits are exempt from income and withholding taxes, such as unused vacation leave payments up to 10 days per year for private employees, medical allowances up to ₱1,500 per semester or ₱250 per month, and daily meal allowances for overtime up to 25% of the minimum wage. All other benefits not on this list are subject to taxation

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    Fringe Benefits Definition

    Uploaded by

    Theodore Dolar
    102 views3 pages
    Fringe benefits are goods, services, or other benefits provided to employees in addition to basic salaries. This includes housing, vehicles, household help, education assistance, and health or life insurance premiums beyond what is legally required. De minimis benefits are small value facilities and privileges offered to promote employee health, goodwill, and efficiency. Certain de minimis benefits are exempt from income and withholding taxes, such as unused vacation leave payments up to 10 days per year for private employees, medical allowances up to ₱1,500 per semester or ₱250 per month, and daily meal allowances for overtime up to 25% of the minimum wage. All other benefits not on this list are subject to taxation

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    Fringe benefits are goods, services, or other benefits provided to employees in addition to basic salaries. This includes housing, vehicles, household help, education assistance, and health or life insurance premiums beyond what is legally required. De minimis benefits are small value facilities and privileges offered to promote employee health, goodwill, and efficiency. Certain de minimis benefits are exempt from income and withholding taxes, such as unused vacation leave payments up to 10 days per year for private employees, medical allowances up to ₱1,500 per semester or ₱250 per month, and daily meal allowances for overtime up to 25% of the minimum wage. All other benefits not on this list are subject to taxation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    102 views3 pages

    Fringe Benefits Definition

    Uploaded by

    Theodore Dolar
    Fringe benefits are goods, services, or other benefits provided to employees in addition to basic salaries. This includes housing, vehicles, household help, education assistance, and health or life insurance premiums beyond what is legally required. De minimis benefits are small value facilities and privileges offered to promote employee health, goodwill, and efficiency. Certain de minimis benefits are exempt from income and withholding taxes, such as unused vacation leave payments up to 10 days per year for private employees, medical allowances up to ₱1,500 per semester or ₱250 per month, and daily meal allowances for overtime up to 25% of the minimum wage. All other benefits not on this list are subject to taxation

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Fringe Benefits Definition

    Fringe benefit means any goods, services, or other benefit furnished or granted in cash or in kind, in
    addition to basic salaries, to an individual employee, except a rank and file employee [RR No. 03-98,
    Sec 2.23b]

    Fringe benefit means includes but not limited to


    the following:
     Housing
     Expense Account
     Vehicle of any kind
     Household personnel, such as maid,driver and others
     Interest on loan at less than market rate to the extent of the difference between the market
    rate and actual rate granted.
     Membership fees, dues and other expenses borne by the employer for the employee in
    social and athletic clubs and similar organizations
     Expenses for foreign travel
     Holiday and vacation expenses
     Educational assistance to the employee or his dependents; and
     Life or health insurance and other nonlife insurance premiums or similar amounts on excess
    of what the law allows.

    De Minimis Benefits
    De Minimis Benefits are facilities and privileges
    furnished or offered by an employer to his
    employees that are relatively small value and
    are offered or furnished by the employer merely as means of promoting health, goodwill,
    contentment, and efficiency of his employees
    [RR No. 3-98, Sec 2.23c]

    The following De Minimis Benefits are exempt


    from income tax and withholding tax on
    compensation income of BOTH managerial
    and rank and file EEs [as provided by R.R. No.
    11-2018/ R.R. No. 5-2011 / R.R. No. 8-2012
    and R.R. No. 1-2015 ]:

    1. Monetized unused vacation leave credits of


    PRIVATE employees not exceeding ten
    (10) days during the year. Note that the
    monetization of unused VL credits in
    excess of 10 days and monetization of SL
    even if not exceeding 10 days are subject
    to tax; [RR No. 5-2011]

    2. Monetized value of vacation and sick leave


    credits paid to GOVERNMENT officials
    and employees. Note that there is no limit
    as to the number of credits; [RR No. 5-
    2011]

    3. Medical cash allowance to dependents of


    employees, not exceeding P1,500 per
    employee per semester or P250 per
    month; [RR No. 11-2018]

    4. Rice subsidy of P2,000 or one (1) sack of


    50 kg. rice per month amounting to not
    more than P2,000; [RR No. 11-2018]

    5. Uniform and Clothing allowance not


    exceeding P6,000 per annum; [RR No. 11-
    2018]

    6. Actual medical assistance, e.g. medical


    allowance to cover medical and healthcare
    needs, annual medical/executive checkup,
    maternity assistance, and routine
    consultations, not exceeding P10,000.00
    per annum; [RR No. 5-2011]

    7. Laundry allowance not exceeding P300 per


    month; [RR No. 5-2011]

    8. Employees achievement awards, e.g., for


    length of service or safety achievement,
    which must be in the form of a tangible
    personal property other than cash or gift
    certificate, with an annual monetary value
    not exceeding P10,000 received by the
    employee under an established written
    plan which does not discriminate in favor of
    highly paid employees; [RR No. 5-2011]

    9. Gifts given during Christmas and major


    anniversary celebrations not exceeding
    P5,000 per employee per annum; [RR No.
    5-2011]

    10. Daily meal allowance for overtime work


    and night/graveyard shift not exceeding
    twenty-five percent (25%) of the basic
    minimum wage on a per region basis; [RR
    No. 3-98]

    11. Benefits received by an employee by virtue


    of a collective bargaining agreement (CBA)
    and productivity incentive schemes
    provided that the total monetary value
    received from both CBA and productivity
    incentive schemes combined do not
    exceed P10,000.00 per employee per
    taxable year. [RR No 1-2015]
    All other benefits given by employers which are
    not included in the above enumeration shall
    NOT be considered as "de minimis" benefits
    and hence, shall be subject to withholding tax
    on compensation (rank and file employees)
    and FBT (managerial/supervisory employees).

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