Jan 19, 2008


Before continuing, it is best to define exactly what is meant by employee benefits. The narrowest definition of the term includes only employer-provided benefits for death, accident, sickness, retirement, or unemployment. Even with this approach, there is disagreement on whether the definition should include those benefits that are financed by employer contributions but provided under social insurance programs, such as workers' compensation insurance, unemployment insurance, Social Security, and Medicare. On the other hand, the broadest definition of employee benefits includes all benefits and services, other than wages for time worked, that are provided to employees in whole or in part by their employers.

This text uses a broad definition and defines employee benefits as including benefit plans for employees that arise from the following five categories of employer payments or costs:

Legally required social insurance payments. These include employer contributions to the following programs:

- Social Security

- Medicare

- Unemployment compensation insurance

- Workers' compensation insurance

- Temporary disability insurance

Payments for private insurance and retirement plans. These include the cost of establishing such plans, as well as contributions in the form of insurance premiums or payments through alternative funding arrangements. Benefits are provided under these plans for personal loss exposures such as the following:

- Old age

- Dental expenses

- Death

- Legal expenses

- Disability income

- Property damage

- Medical expenses

- Liability judgments

Payments for time not worked. These include the following:

- Vacations and holidays

-Maternity leave

- Sick leave

- Sabbatical leaves

- Jury duty

Extra cash payments to employees. These are cash payments other than wages and bonuses based on performance. Benefits in this category include the following:

- Educational expense allowances

- Savings plans

- Moving expenses

- Christmas bonuses

- Current profit-sharing payments

- Suggestion awards

Cost of services to employees. These include items such as the following:

- Subsidized cafeterias

- Adoption assistance

- Recreation programs

- Wellness programs

- Clothing allowances

- Day care centers

- Financial counseling

- Transportation benefits

- Retirement counseling


R W Employee Benefits said...

Life insurance is very important and it is the best way to save money. If you are busy person and have no any time to go insurance company and you can easily get insurance in the internet.
employee benefits program New York

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