Which of the following is an example of a fringe benefit?

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Multiple Choice

Which of the following is an example of a fringe benefit?

Explanation:
Fringe benefits are non-cash rewards included in an employee’s pay package, added on to salary to boost welfare or perks. A free counseling service fits this description because it’s a service provided by the employer at no direct cash cost to the employee and isn’t paid as part of regular wages. It adds value to the overall compensation without increasing cash pay. The other options are cash-based compensation: a salary increase changes the amount of money received each period; overtime pay is extra cash for extra hours worked; a performance bonus is a cash reward. These are direct monetary payments, not non-cash fringe benefits.

Fringe benefits are non-cash rewards included in an employee’s pay package, added on to salary to boost welfare or perks. A free counseling service fits this description because it’s a service provided by the employer at no direct cash cost to the employee and isn’t paid as part of regular wages. It adds value to the overall compensation without increasing cash pay.

The other options are cash-based compensation: a salary increase changes the amount of money received each period; overtime pay is extra cash for extra hours worked; a performance bonus is a cash reward. These are direct monetary payments, not non-cash fringe benefits.

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