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13 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Purpose of Benefits
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Provide security for employees and their family members
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Companies believe benefits
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Attract good employees
Increase morale Reduce turnover Increase job satisfaction Enhance organization’s image |
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Legally Required Benefits
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Workers Comp
SS Unemployment Insurance |
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Workers’ Compensation
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Form of no-fault insurance
Employees are eligible even if their actions caused the accident |
Covers work-related injuries, diseases
Medical care for work-related injuries Temporary disability benefits Permanent partial and permanent total disability benefits Survivor benefits Rehabilitation Covered by State, not Federal laws |
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Social Security
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• Provides a foundation of basic security for American
workers and their families ◦ Old age or disability benefits ◦ Benefits for dependents of retired or disabled workers ◦ Benefits for surviving members of a deceased worker ◦ Lump-sum death payment Tax on employee earnings 4.2% paid by employee on earnings up to $110,100 (2012) 6.2% paid by employer on earnings up to $110,100 (2012) If self employed, individual pays 10.4% |
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Medicare (funding part of SS)
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Tax on employee earnings
1.45% paid by employee on all earnings 1.45% paid by employee on all earnings If self employed, individual pays 2.9% |
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Unemployment Insurance
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Unemployment compensation is financed exclusively by
employers that pay federal and state unemployment insurance tax in the majority of states Federal tax amounts to 6.2% of the first $7,000 earned by each worker States additionally impose a tax above the $7,000 figure The extra amount a company pays depends on its experience rating |
Eligibility requirements to receive benefits
Must meet state requirements for wages earned or time worked during an established (one year) period of time referred to as a “base period” Must be determined to be unemployed through no fault of your own and meet other eligibility requirements of State law |
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Family and Medical Leave Act (FMLA)
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What employers?
Employers with 50 or more employees Which employees? Must have worked at least 1,250 hours for the employer in the previous year When? Care for a new child (birth, adoption, or fostering) Care for a seriously ill family member (parents, spouse, child) Recover from one’s own serious illness To care for an injured service member in the family To address qualifying exigencies arising out of a family member’s deployment What? Continuance of group health insurance benefits Restoration of position Protection of benefits Protection from retaliation 12 weeks unpaid leave |
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Retirement Plans
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Employees rank pensions as one of the more important
benefits Two generic types of plans Defined benefit plans (pension) - employer provides a specific pension level Defined contribution plans - contributions by employer I401(k), ESOPs, etc.] |
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Life Insurance
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One of the most common benefits
Most companies offer term policies Value of 1-2 times an employee’s salary Most plan premiums paid completely by employer Companies make retiree coverage forfeitable at the time of departure Is heavily affected when shifting to flexible benefit program |
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Health and Medical Benefits
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General Health care
Heath care: cost control startgeies Short and long term disability denatl vision |
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Main reason firms do not provide health coverage
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high premiums
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Short- and Long-Term Disability
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Workers’ compensation covers disabilities that are workrelated
Social security has provisions for disability income to those who qualify Private sources of disability income Employee salary continuation plans Long-term disability plans |
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