Introducing fringe benefits: what employees should know

Fringe benefits are payments made by an employer to an employee usually in a form other than cash. The value of such a payment or benefit is calculated according to the various formulas set out in the Seventh Schedule to the Income Tax Act 58 of 1962 and included in the employee’s gross income for taxation purposes.

Employees need to be aware of any payments they receive that may constitute fringe benefits because the income tax payable on such payments may result in a significant tax burden.

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