 Hello in this lecture we will define employee benefits. According to fundamental accounting principles Wild 22nd edition the definition of employee benefits is additional compensation paid to or on behalf of employees such as premiums for medical dental life and disability insurance and contributions to pension plans. When we're thinking about employee benefits we're really thinking about those types of compensations that are not cash most of the time. Anything that we are receiving from the employer is thought to be some form of compensation. The reason we're receiving something is because we are working for the employer and the employer is providing some type of compensation. We generally think of compensation in the form of cash but anything we receive would be some form of compensation. Why would an employer provide some of these other forms of compensation? One of the main reasons is that