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12 Cards in this Set
- Front
- Back
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Employee Benefits
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Any type of compensation other than direct current wages paid to EE. |
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Total Compensation
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(current cash salary) + (value of EE benefits) |
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Types of Loss Exposures managed into EE benefit Plan (3) |
1. medical expenses for EE. 2. loss of income to EE(or EE dependents) 3. loss of productivity to an ER. |
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Why are EE benefits important for ER? |
1. firms spend about 40% of payroll on benefits. 2. second largest expense behind payroll. 3. health insurance is very expensive. |
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Types of EE benefits to meet loss exposures. (5)
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1. Medical Expenses for an EE. |
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2. Loss of Income due to retirement. |
- Defined Contribution Plan - 401 k % 403 b - SOCIAL SECURITY RETINREMENT BENEFITS |
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3. Loss of income due to disability. |
- non-occupation disability (sick leave, short term, long term, -SOCIAL SECURITY DISABILITY BENEFITS |
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4. Loss of income due to unemployment. |
-UNEMPLOYMENT INSURANCE |
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5. Loss of income due to death. |
*Group term life insurance -SOCIAL SECURITY SURVIOR BENEFITS -WORKERS COMP DEATH BENEFITS -survivor benefits under retirement plans. |
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Which benefits are required to be offered?
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-Social Security retirement benefits -Workers Comp -SS disability benefits -Unemployment insurance -SS survivor benefits - Workers comp death benefits (OASDI,WC,U.I.) |
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Why do firms offer EE benefits as part of COMPENSATION? |
1. take advantage of group insurance 2. to attract/retain capable EE 3.to enhance productivity of EE 4. Income tax advantages ($1 salary-> .40 benefits) vs ($1.40 in salary w no benefits) |
