The long list of fringe benefits that are tax-free includes: Medical insurance Disability insurance Health Savings Accounts (HSA) Dependent care assistance (DCAP- usually offered as an FSA) Education tuition assistance Group term life insurance (up … A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages. director of a company. beneficiary of a trust who works in the business. Examples of fringe benefits include: For fringe benefits tax (FBT) purposes, an employee includes a: current, future or past employee.