What is an example of a fringe benefit?

A fringe benefit is a form of compensation provided to employees that is not included in their regular salary or wages. These benefits are often additional perks that enhance the overall compensation package and can contribute significantly to employee satisfaction and retention.

Insurance coverage is a classic example of a fringe benefit, as it represents a non-wage compensation provided by the employer to support the health and well-being of employees and their families. This may include health, dental, vision, or life insurance, contributing to a more robust overall compensation structure.

Other options like a seasonal bonus represent a monetary incentive or reward based on performance or company success, rather than an additional benefit outside of salary. Job placement assistance is a supportive service that helps employees find new roles but does not directly enhance their current compensation package. Flexible work hours are beneficial for work-life balance but are more about work arrangements than fringe benefits in the financial sense.

Thus, insurance coverage clearly stands out as a classic example of fringe benefits, directly enriching the employee experience beyond direct salary payment.