Final answer:
Non-cash compensation such as health insurance, vacation, and childcare are referred to as Benefits, and they include various health benefits, retirement plans, and legally required contributions, constituting a substantial part of an employee's total compensation.
Step-by-step explanation:
The non-cash compensation that includes programs such as health insurance, vacation, and childcare are referred to as Benefits. Employee benefits often encompass supplemental pay, Health Benefits, Retirement and Savings, which can be categorized into Defined Benefit and Defined Contribution plans, as well as Legally Required contributions like employer payments to Social Security, unemployment, worker's compensation insurance, and Medicare. It is important to understand that these benefits form a significant part of the total compensation per hour received by workers, in addition to their salaries or wages.
Employee benefits, commonly referred to as benefits, constitute non-cash compensation and encompass various programs such as health insurance, vacation time, and childcare support. These benefits are a critical component of an employee's total compensation package, extending beyond monetary wages or salaries. They often include supplemental pay, health benefits, and retirement and savings plans. Retirement benefits can further be categorized into Defined Benefit and Defined Contribution plans. Additionally, legally required contributions, such as employer payments to Social Security, unemployment, worker's compensation insurance, and Medicare, are integral parts of employee benefits.
Understanding the comprehensive nature of these benefits is essential, as they contribute significantly to the overall compensation received by workers on an hourly basis. The inclusion of non-monetary benefits reflects the holistic approach that organizations take to attract and retain talent, promoting the well-being and financial security of their workforce.