car fringe benefits

Car fringe benefits refer to the advantage an employee receives when their employer provides a vehicle for personal use, in addition to salary. This benefit can influence the employee’s taxable income, meaning they might owe tax based on the value of this benefit. Essentially, it’s a way for companies to offer employees a company car, which is considered part of their overall compensation package. The value of the benefit depends on factors like the car’s value and usage, and tax rules help determine how much tax the employee pays for this perk.