What expense category do employee benefits come under?

There are a few different ways to categorize employee benefits expenses. The most common method is to include them under "compensation and benefits" in the human resources budget. However, some businesses choose to break out employee benefits as their own line item in the budget. Additionally, some businesses include employee benefits under "operating expenses". Ultimately, it is up to the business owner or finance team to decide which expense category is the most appropriate for their company.