A Fringe benefit(s) is a form of pay you may receive from your employer for the performance of services.
Any fringe benefit that you receive is taxable and must be reported on your Wage and Tax Statement ( Form W-2), however, IRS law does allow certain exclusions. To determine if your fringe benefit(s) is exempt from taxation, please refer to IRS Publication 15b.
For example: Your employer provides you with a fringe benefit if you are allowed to use a business vehicle to commute to and from work.