A fringe benefit is a form of compensation you may receive from your employer for the performance of services and may be reported on your Form W-2 if it is taxable.
Taxable fringe benefits are generally reported on your Wage and Tax Statement (Form W-2), although certain fringe benefits may be excluded from income under IRS rules. Fringe benefits may appear on Form W-2 depending on the type of benefit and whether it is considered taxable by the IRS. Please refer to IRS Publication 15-B for more information.
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.