Final answer:
Fringe benefits are additional compensation for employees beyond base pay and include life insurance, sick days, paid vacation, and contributions to retirement and insurance plans.
Step-by-step explanation:
Fringe benefits are forms of pay for the performance of services given to employees in addition to their regular wages or salaries. Some examples of such benefits include life insurance, unemployment and worker's compensation insurance, which are designed to provide financial protection and security to workers in various situations. Employer contributions to retirement plans, both Defined Benefit and Defined Contribution, are also considered fringe benefits. Employers may contribute to pension funds, which are then insured by entities like the Pension Benefit Guarantee Corporation to provide a safety net in case of company bankruptcy.
Paid leave options such as sick days and paid vacation are another type of fringe benefit, offering employees a paid absence from work for health issues or leisure without losing income. These benefits are essential parts of a comprehensive compensation package beyond base pay, influencing an employee's total compensation.