Question

Which of the following is categorized as an indirect payment

Answer 1

Answer:    C. Employer-paid insurance

Explanation:  Employees can receive benefits i.e. financial payments in two ways, direct and indirect payments. Direct financial payments are all those paid directly by the employer to the employee, which means the employee can use those payments immediately after payment, such as wages, salaries, various bonuses, commissions, etc. Indirect benefits are all those paid by the employer to an employee from which the employee will benefit during or after a fixed period of time. These are, for example, life, health, so all kinds of insurance, paid holidays, pension funds, etc.