What is a common characteristic of fringe benefits?

The common characteristic of fringe benefits lies in their often having specific valuation methods and exemptions. Fringe benefits are various forms of compensation provided to employees in addition to their regular salaries, and they can include medical insurance, retirement plan contributions, and more. Many of these benefits are subject to unique rules regarding how they are valued for tax purposes and often come with specific exemptions under tax law.

For example, certain health benefits may be excluded from taxable income, while others might require a specific way of calculating their value. This complexity in valuation and the availability of exemptions are key features that differentiate fringe benefits from regular compensation.

In contrast, the other options do not accurately describe fringe benefits. They do not exclusively benefit the employer, as they are intended to attract and retain employees. Not all fringe benefits are fully taxable; many, as mentioned, have exemptions. Lastly, fringe benefits encompass a wide range of non-cash items and do not include only cash bonuses. Thus, understanding the specific valuation methods and exemptions is essential in recognizing the nature and treatment of fringe benefits.