Final answer:
Benefits are non-wage compensations provided to employees by employers, which include health insurance, retirement plans, and legally required contributions such as social security and workman's compensation insurance.
Step-by-step explanation:
This part of the total compensation package, other than pay for time worked, that is provided to employees in whole or part by employer payments is commonly referred to as benefits. These benefits include a variety of non-wage compensations such as employee insurance (primarily health insurance), retirement plans, payments to social security, unemployment and worker's compensation, and other benefits like Medicare.
Examples of Employee Benefits:
- Supplemental Pay - This encompasses bonuses, overtime pay, and holiday pay, which are additional monetary compensations on top of the base salary or hourly wage.
- Insurance - Employers offer health benefits that may include medical, dental, and sometimes life insurance.
- Retirement and Savings - Both defined benefit and defined contribution plans fall under this category, including employer contributions to pensions or retirement savings accounts.
- Legally Required - Employers also make contributions to legally required programs like social security and Medicare on behalf of their employees.
These benefits are a critical component of an employee's total compensation per hour and often influence their overall job satisfaction and loyalty to a company. It's also important to note that employers are required by law to make specific contributions, such as for social security and workman's compensation insurance.