Which option correctly identifies two benefits that are not fringe benefits?

Which option correctly identifies two benefits that are not fringe benefits?

• A. Overtime and Workers' Comp
• B. Insurance, Vacation, and Sick Leave
• C. Unemployment benefits
• D. Sponsoring a 5k walk

Answer: (A)

Fringe benefits are extra perks an employer voluntarily provides beyond regular wages. Overtime pay and workers’ compensation aren’t fringe benefits because they are required by law and part of mandatory pay or protection, not voluntary extras. Overtime is the pay promised for extra hours worked, and workers’ compensation is the statutory insurance for work-related injuries. In contrast, items like insurance, vacation, and sick leave are classic fringe benefits offered by employers, unemployment benefits come from government programs, and sponsoring a 5k walk is a company activity, not a wage or benefit to employees. So the two that are not fringe benefits are overtime and workers’ compensation.

Fringe benefits are extra perks an employer voluntarily provides beyond regular wages. Overtime pay and workers’ compensation aren’t fringe benefits because they are required by law and part of mandatory pay or protection, not voluntary extras. Overtime is the pay promised for extra hours worked, and workers’ compensation is the statutory insurance for work-related injuries. In contrast, items like insurance, vacation, and sick leave are classic fringe benefits offered by employers, unemployment benefits come from government programs, and sponsoring a 5k walk is a company activity, not a wage or benefit to employees. So the two that are not fringe benefits are overtime and workers’ compensation.