As the cost of living continues to rise, more and more employers are offering in-kind benefits to their employees to provide additional support and help with their everyday expenses.
In-kind benefits are non-cash benefits that an employer provides to an employee instead of, or in addition to, salary or wages. These benefits can take many forms, from meals and transportation to housing and childcare.
This is a representation photo showing a man in black jacket and pants sitting on white snow receiving something from a stranger. Experts say in-kind benefits are not taxable. (Photo by Jon Tyson on Unsplash)
Type of In-Kind Benefits Explained
Use Multiplier explained that food and meals are among the most common types of in-kind benefits. Employers may provide free breakfast, lunch or snacks to employees to help them save on their daily expenses. This can be especially beneficial for those who work long hours or have limited access to affordable food options.
Transportation is another in-kind benefit that employers can offer to their employees. This can include providing company vehicles or reimbursing employees for their travel expenses. Some employers may even offer shuttle services to help employees get to and from work.
Housing is another in-kind benefit that some employers may offer. This can include subsidized housing for employees struggling to make ends meet. Some companies may also offer relocation assistance for employees who are moving to a new area for work.
Childcare is another in-kind benefit that is becoming increasingly popular. Employers may provide on-site daycare facilities or subsidies to help employees pay for their children’s childcare expenses. This can greatly help working parents who may struggle to find affordable and reliable childcare.
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In-kind benefits can include health and wellness benefits, such as gym memberships or wellness programs. Some employers may even offer financial counseling or legal services to help employees manage their finances and plan for their future.
Not taxed?
Marca said that fringe benefits, such as in-kind taxes, are often excluded from an employee’s taxable remuneration, in contrast to fringe benefits like bonuses or reimbursements that are provided in cash and are likely subject to income tax.
As an example, a person could get accommodations from their workplace so they can do their jobs. The employee won’t pay taxes on the perk in this scenario.
If in-kind benefits were subject to tax, people would have to pay taxes on non-cash income.
To do so would place a heavy financial strain on those who could be in the low and moderate income ranges.
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