Final answer:
Indirect financial payments to employees include benefits like retirement plans, various insurances, and profit-sharing that are not part of the regular wages but contribute to the overall compensation.
Step-by-step explanation:
Any indirect financial payments given to employees are typically benefits or compensation that are not directly paid as part of their regular wages. These can include things like retirement plans, employee insurance (including health, unemployment, and worker's compensation insurance), and employer payments to Social Security and Medicare. Also included are profit-sharing plans and stock options, which allow employees to share in the success of the company. Indirect payments can further encompass government-mandated programs such as social security benefits, disability payments, and unemployment compensation. Additionally, businesses may contribute to pension insurance, like payments made to the Pension Benefit Guarantee Corporation to ensure that retired employees receive their promised pension benefits, even if the company faces bankruptcy.
It's important to differentiate these from deductions from an employee's wages, such as taxes, and employer-paid taxes, which are costs employers incur directly from employing a worker. The overall goal of indirect payments is often to improve employee satisfaction and productivity by providing financial security and benefits that directly relate to their wellbeing.