Question

'Compensation refers to all forms of pay or rewards going to employees where some payments are direct and some are indirect.' An indirect payment is:

• A. Bonus
• B. Daily Incentive
• C. Commission
• D. Employer paid Insurance

Hint:

Indirect payments are non-cash benefits that contribute to the overall compensation package but are not directly received as income.

Answer 1

The Correct Option is D

Step 1: Understanding the question.
The question asks about an indirect payment, which is a form of compensation that is not directly paid to the employee but benefits them.
Step 2: Analyzing the options.
- Bonus: A bonus is a direct form of payment, as it is paid in cash or cash-equivalents.
- Daily Incentive: This is also a direct form of payment provided based on daily performance.
- Commission: This is a direct form of compensation, typically linked to sales or performance.
- Employer paid Insurance: This is an indirect payment, as it is a benefit provided to employees but not in the form of direct pay.
Step 3: Conclusion.
The correct answer is Employer paid Insurance, as it is an indirect form of payment or compensation.
Final Answer: \[ \boxed{\text{The correct answer is (4) Employer paid Insurance.}} \]