Which term refers to non-cash rewards such as health insurance and retirement plans provided by an employer?

Which term refers to non-cash rewards such as health insurance and retirement plans provided by an employer?

• A. Employer-paid benefits
• B. Fringe benefits
• C. Perquisites
• D. Employee benefits

Answer: (C)

Fringe benefits describe non-cash rewards provided by an employer, such as health insurance and retirement plans. These are part of the employee compensation package and are typically available to most or all staff, not just a select few. Perquisites, by contrast, are privileges or perks that go beyond standard compensation and are often reserved for higher-level employees, making them less representative of the everyday benefits like health coverage and retirement plans. While “employee benefits” is a broad umbrella that includes both cash and non-cash elements, fringe benefits is the precise term for the non-wage, employer-provided rewards described.

Fringe benefits describe non-cash rewards provided by an employer, such as health insurance and retirement plans. These are part of the employee compensation package and are typically available to most or all staff, not just a select few. Perquisites, by contrast, are privileges or perks that go beyond standard compensation and are often reserved for higher-level employees, making them less representative of the everyday benefits like health coverage and retirement plans. While “employee benefits” is a broad umbrella that includes both cash and non-cash elements, fringe benefits is the precise term for the non-wage, employer-provided rewards described.