Which of the following statements best describes fringe benefits?
A) All fringe benefits are paid by the federal government.
B) Examples of fringe benefits include vacation and sick leave.
C) Fringe benefits are classified as a form of direct compensation.
D) Profit sharing is a form of fringe benefit.

Question

Quizplus · Accepted Answer

Fringe benefits are non-salary compensation provided to employees in addition to their regular pay. Examples include vacation and sick leave, health insurance, retirement plans, and other perks. Option A is incorrect because fringe benefits can be paid by employers, not only by the federal government. Option C is incorrect because fringe benefits are not considered direct compensation but rather indirect compensation. Option D is partly correct because profit sharing can be considered a type of fringe benefit if it is offered as a non-salary form of compensation to employees.

Which of the Following Statements Best Describes Fringe Benefits