Employee benefits refer to compensation other than hourly wage, salary, or incentive payments. Benefits programs are characterized by: Protection, Paid Time Off, and Accommodation and Enhancement. Protection programs - provide family benefits, promote health, and guard against income loss caused by catastrophic factors such as unemployment, disability, and serious illnesses. Paid time-off policies - compensate employees when they are not performing their primary work duties, for example, vacation and holidays. Accommodation and enhancement benefits - promote opportunities for employees and their families, including stress management classes, flexible time, and tuition reimbursement.