...Common Employee Benefit Plans . Primary Categories of Benefit Plans • Legally Required Benefits 1. Workers Compensation offers insurance benefits to employees who become ill or are injured at work. This insurance is different in every state and is dictated at the state level. In addition, some states require employers to purchase disability insurance. 2. Unemployment Insurance provides compensation to employees who lose their job for no fault of their own. It is different in every state and is mandated at the state level. The first step is to register the business with the state’s workforce agency and that is where you’ll learn what the state requirement is. 3. Social Security Taxes are required to be paid on employees. The current rate for SS tax is 6.2%, which both the employee and the employer pays, plus an additional 1.45% for Medicare tax. 4. Family and Medical Leave is a benefit that is sometimes confusing for employees. What the Family and Medical Leave Act (FMLA) requires is for the employer to provide 12 weeks of unpaid time off to employees during a 12 month period of time. The leave protects the employee from losing their job to care for themselves or an immediate family member, including the birth of a child or child care. The leave is unpaid unless the employer offers paid leave as part of an optional benefits package. 5. COBRA Benefits are required for employers with 20 or more employees who are subject to the Consolidated Omnibus...
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...Employee benefits Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated. Often, attraction and retention of employees are key business issues. The discussion of employer goals for retirement benefits below and the data provided demonstrate that employers are viewing the provision of these benefits as a key business issue, with attraction, retention and being competitive being the three top goals. Employee benefits help attract and retain good employees. For many individuals, the availability of satisfactory health benefits is essential if they are to consider employment, and health benefits are often a consideration in leaving jobs as well. This may change in 2014, after the implementation of the Affordable Care Act. Employers can improve the net welfare of their employees through offering benefits. Employee benefits are often tax-effective, so that a dollar spent on benefits gets more than a dollar of value for employees. Benefits provided on a group basis are generally more cost-effective than individual insurance. In addition, group purchase allows all employees to be covered, not just those in good health. Well-structured and -managed defined benefit plans generally get better investment returns than many defined contribution participants, and allow more dollars of retirement benefits to be delivered per dollar paid in. Benefits paid as guaranteed life income allow...
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...comprehensive employee benefit package for hotel managers for the year of 2012. This memo will also cover other positions under hotel manager. The employees, who receive a copy of this memo, will receive a benefit package in the mail within the next seven to ten days in the mail. In the benefit package, employees will find an introductory letter that will explain what is in the benefit package. The first thing I want to inform the employees of is that not many of the benefits from the past have been changed, but some benefits have been implemented to help provide more benefits to our employees. The first new benefit is a flexible spending account for the managers. This flexible spending account will allow the managers to buy accommodations to better suit the hotel guest. Any manager will be able to buy a need for a hotel guest like different shampoos or any other need a guest may need. There will be more allowable sick time for employees, which mostly around the flu season, we understand that many employees get sick or their kids get sick. This is a family environment and we understand that family is important. Paid vacation days will be given to the employees that have been with the company for a total of one year. The first year of employment will be a one week paid vacation, two years will be ten days and three years will be two weeks. The employee that is ready for vacation time must ask the manager a week in advance to make note that the employee is off for vacation...
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...119 Employee Benefits MFRS 119 define employee benefits as to prescribe the accounting and disclosure by employers for employee benefits. Thus, it replaces MASB Approved Accounting Standard IAS 19 Accounting for Retirement Benefits in the Financial Statements of Employees. The major changes from old IAS 19 are set out in the Basis for Conclusions. The Standard does not deal with reporting by employee benefit plans (see FRS 126 Accounting and Reporting by Retirement Benefit Plans ). From MFRS 119, there are four categories of employee benefits to be identified which are: (a) short-term employee benefits, such as wages, salaries and social security contributions, paid annual leave and paid sick leave, profit-sharing and bonuses (if payable within twelve months of the end of the period) and non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services) for current employees; (b) post-employment benefits such as pensions, other retirement benefits, post-employment life insurance and post-employment medical care; (c) other long-term employee benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are payable twelve months or more after the end of the period, profit-sharing, bonuses and deferred compensation; and (d) termination benefits. 3.1 Accounting Policy Used on MFRS 119 Employee Benefits for AZRB AZRB act or implement the employee benefits based...
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...Week Eight: Discussion 1: “Employee Benefits.” Students will respond to the following: Discuss how benefits contribute to an overall compensation plan. The total wage cost of an employee to the organization is far more than the pay rate of that employee. Likewise, the total compensation reward of the employee exceeds his or her take-home pay. Total compensation consists partly of the pay of the employee and partly of a set of other rewards that are loosely called benefits. The addition of these items to the compensation package considerably complicates all aspects of the administration of compensation --from the compensation strategy to the implementation of the plan. Benefits are unlike base pay in that they are awarded for different objectives, they are not periodically given, they are oftentimes deferred rather than current, and they require different types of administration. Since pay and benefits together make up the wage costs of the organization, there is a trade-off between direct pay and benefits. This is an extremely important point and helps to explain some of the lack of wage increases in the US (Atchison, T. J., Belcher, D. W. & Thomsen, D. J., 2010). . Benefits are a hodgepodge of programs that provide employees with a number of forms of rewards beyond their wages. Besides fringe benefits, this area has been called such things as indirect compensation, wage supplements, non-wage benefits, social wages, supplementary employee remuneration, supplementary...
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...Employers provide two types of benefits namely those required by law like social security and workers compensation and discretionary benefits ones offered to compensate employees such as insurance covers and retirement benefits (Martoccio, 2011). When planning employee benefits, organizations consider factors such as the role that the benefits play in attracting and retaining employees, how they impact on driving employee commitment, how it communicates the organizations recognition of employees personal and family life, the benefits competitiveness in comparison to other employers and how the benefits impact on profitability and appropriate levels of staffing (Turner, 2011). Employers seek to lure in and retain employees. Employees carefully consider the benefits in addition to the pay that an organization offers before accepting job offers. Reports suggest employees rank other factors such as the location, security of tenure, its impact on personal and family life, opportunities for career growth and the work environment lower than benefits and pay considerations in employment decision making (Lineberry & Trumble, 2000). Some of the benefits that employers consider vital include medical plans, retirement plans, employer matched retirement savings plan, paid vacation time and holidays, sick leave and short term disability among others (Lineberry & Trumble, 2000). In designing benefits programs, employers also take note of the fact that the benefits play a role in encouraging...
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...Team B Employee Benefits Policy Business Writing GEB 3213 Fall 2014 Blue Waves Consulting Employment Policy According to Johnny Laurent, the Vice president and general manager for Sage North America “The best way for a company to increase competitiveness is to invest in the employees.” (Sage HRMS, n.d., para 2). Why are some companies succeeding while others are going out of business? What are the extraordinary difference between a struggling company and a successful organization? Perhaps, the question that needs to be asked is what defines the soul of a company? The answer is its people. Individuals are the principal assets of every organization. For most businesses, the workforce is considered largest expenditure in resources. At Blue Waves Consulting LLC, we truly believe that our employees are the most important elements that provide success to the organization. This is the reason why our organization is taking into account of the employee related expenses as solid investments, which can yield a healthy return for the future of the company. We call this investment the Return on Employee Investment (ROEI). This type of investment will assist a company in providing the best possible work environment in attaining the employee and their allegiance to the firm. The utilization of ROIE will bolster the company’s effectiveness, competitive edge, profit and success. The workforce today is confronted with changing economic trends, such as the implementation of the Patient...
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...Assignment: Employee Benefit Dolphinette Williams HRM/240 November 21, 2010 Karen M. Wilson MEMO TO: Upper Management FROM: Dolphinette Williams RE: Employee Benefit Package DATE: November 21, 2010 I propose this benefit package plan for all current and new hire employees. Offering these benefits will keep the talent we have and recruitment of new talent will be easier. Because the company is a small company we will have to consider the cost of each benefit for the company. I suggest that each of the benefits recommended in this package have thoroughly been researched and the cost would be minimum for the company, keeping in mind what would be cost effective for our employees too. I recommend that we offer an HMO plan, because this plan cost the company less and less out of pocket money for our employees. The company would pay the cost for the employees and the employees would pay a cost to insure their family members. I recommend that we offer the employee two weeks paid vacation after one full year of employment with the company. We would offer an additional week after five years of service with the company. Employees should give a two week notice to get approval for vacation time. Employees should be allowed to carry over one week of vacation time not accumulating more than four weeks of vacation in any given year. I would also recommend four hours of sick leave accrual for every 40 hours worked in a pay period. Sick leave is recommended because employees...
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...EMPLOYEE BENEFITS & SERVICES While today’s organizations are recognizing employee diversity , most are finding that their personal services benefits packages to be either non-existent or out of date considering the new world market. But with the implementation of new laws and tax breaks for both employer and employee, many are moving toward programs that involve options that benefit the structure as a whole. As organizations compete in today’s marketplace , what become clear is that they must offer products and services that not only appeal to a variety of their employees and customers, but routinely maneuver through with a creative style where its organization strategies will lead to better perspectives of the organization’s sensitivity and its self-worth. In an article from C. Richard Weylman, in an article “Changes in Today’s Marketplace” he state “To win more customers and retain existing ones requires the relentless pursuit of improvement in every aspect of your business. If improvement is not a priority an agenda item for you and your team, the risk of becoming mediocre is very real. Complacency leads to mediocrity which ultimately leads to disastrous results in business as well as in life.” Upon reading this quote in one of my first thoughts was immediately focused upon the employees, their educational skills, experience, and culture. Second, I thought of the process of improvement and how might a business create an environment of improvement by advancing...
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...offer their employees benefit packages as part of their total compensation program. Often these benefit packages range in value from 30 to 40 percent above the employee’s base salary. A very interesting question is: Why don’t companies simply pay their employees 30-40% more salary and have the employee select their own benefits? Based on some research and my own experience, I believe that there are four main reasons that employers provide benefits programs to their employees. The four reasons are: - Lower cost – The main reason that employers offer its employees benefits programs lies in the following quote: “A decade ago, many employers adopted benefit plans, in lieu of paying cash, simply for the tax benefits.” (Smith, 2007) According to the article, there is a significant difference in the tax collected on salaries compared to the tax collected on the same value of benefits. - Incentives – Many employees offer benefit programs as a way of enticing people to join their organization. A healthy benefit package is equally as important as salary dollars. - Work satisfaction - Staff are happier with an employer paid and managed benefit program. This type of program reduces stress on employees by taking over the responsibility of benefit program design. - Staff morale – Happier staff means greater staff morale which means more productivity. There are many reasons that employers might offer their employees company managed and paid benefit programs. While the...
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...EMPLOYEE BENEFITS SUMMARY NORTHEAST REHABILITATION HEALTH NETWORK This Benefits Summary applies to employees hired as Northeast Rehabilitation Health Network staff. BENEFIT Automobile and Personal Property Insurance Credit Union Dental Insurance (Delta Dental) BENEFIT EXPLANATION Payroll deduction option through Metpay. (800) 438-6381 Service Credit Union (800) 677-7328 Coupled with Vision Plan includes both participating and non-participating Provider Options. Pre-taxed dollars saved for Medical and Dependant Care and un-reimbursed Medical Costs. Maximum benefit of $10,000 WHEN ELIGIBLE Immediately FT 32-40 X ELIGIBLE PT PT 20-31 16-19 X X PD Temp No PAID BY Employee Immediately Effective 1 of the month following 30 days of employment. Within 30 days of hire or January st 1 of each calendar year. No waiting period st X X X X X No X No Employee NRHN/Employee Flexible Spending Accounts X X No No Employee Life Insurance Basic Life and AD&D (UNUM Life Insurance) Additional Options for: Employee Life (UNUM Life Insurance) Dependent Life (UNUM Life Insurance) X X No No NRHN – 100% Long Term Disability (UNUM) Short Term Disability (UNUM) Medical Plans (Harvard Pilgrim) Prescription Medications (Harvard Pilgrim) 401K Plan (Fidelity) Additional 1x, 2x, 3x or 4x base salary. Maximum of $500,000 (combined w/basic benefits) Spouse - $10,000 Children Birth – 6 mos = $1,000/6 mos – 23 yrs = $2,500 Insurance...
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...0 August 2014 ~ v1.0 Employee Benefits Operational Plan Employee Benefits Operational Plan Contents Contents 2 1. Introduction 3 2. Context 3 1.1. Environment 3 1.2. Industry 4 1.3. Stakeholders 5 1.4. SWOT 6 3. References 9 4. Annexures 10 8.1. Annexure A: PESTEL analysis 10 8.2. Annexure B: Porter’s Five Competitive Forces 11 8.3. Annexure C: SWOT analysis 12 1. Introduction The Employee Benefits operational plan sets out the short-term objectives for the business unit (also referred to as company) for the next 12 months. It aims to identify what needs to be accomplished in order for the company to meet its strategic objectives and it does so by identifying and outlining those activities that need to be implemented. 2. Context The following section provides background for the focus, decisions made and activities selected in the operational plan for Employee Benefits. 1.1. Environment An environment analysis focusses on the external and uncontrollable factors that influence an organisation (Peters [sa]). PESTEL is a common macro environment analysis tool which looks at factors from political, economic, sociocultural, technological, environmental and legal aspects and Vitez (2014) explains that such a macro environmental analysis helps create a strategy that leverage as many of these external factors as possible to the company’s advantage. The PESTEL analysis for Employee Benefits has identified the following...
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...Employee Benefits Sheila Amparado July 29, 2012 HRM/240 Elizabeth Bossell To: Upper Management From: Sheila Amparado Date: July 29’ 2012 Subject: Employee Benefits for Registered Nurses Introduction Within our Healthcare Organization there a number of diverse employees it is extremely difficult to maintain appropriate benefits for each specific individual. Although it is difficult we need flexibility to put the correct benefits in place. As stated on July 1, 2012 healthcare cost are rising and there has been a large number of claims. We are suggesting new appropriate benefits for our Registered Nurses. Recently the Human Resources Department and Upper Management attended a meeting to discuss different employee benefit plans. It was determined that our organization needs to reduce our companies total cost for these benefits. As an organization we are determined to provide our employees with best possible benefits that our company can afford at the present time. Nonetheless, employees and their families need employee benefits. There are several reasons why employees need benefits: medical care, ensuring future finances, unexpected absences, and tragic events. Our organization needs to provide employee benefits in order to keep quality employees with positive attitudes. I have complied a brief summary of employee benefits that the organization would like to offer Registered Nurses in the year 2013. Health...
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...12 Ways to Optimize Your Employee Benefits Program: Low-cost employee incentives, recognition programs and employee rewards Sign up for Business Management Daily's e-letter for Leaders & Managers now and receive aFREE copy of 12 Ways to Optimize Your Employee Benefits Program... Sign up for Business Management Daily's Leaders & Managers e-letter now and receive aFREE copy of 12 Ways to Optimize Your Employee Benefits Program with advice on: * Low-cost employee incentives * Meaningful employee recognition programs * Inspiring employee rewards * And much more... ------------------------------------------------- Top of Form We value your privacy. Bottom of Form If you’ve had to cut pay and staff and now expect more from those who remained, it’s vital to revamp your employee recognition and rewards program. Employers can double their rewards and recognition efforts in innovative, cost-efficient ways. Examples: employee-of-the-month awards, employee incentive pay, employee appreciation luncheons, more time off, shopping sprees, wellness incentive contests, plus employee rewards customized to motivate Millennials, Gen Xers, Baby Boomers and the Matures. Now is the time to get clever with your employee recognition programs. This special report, 12 Ways to Optimize Your Employee Benefits Program: Low-cost employee incentives, recognition programs and rewards, will show you how. Discover low-cost, inspiring ways—many of them suggested by Business Management...
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...Designing Compensation Systems and Employee Benefits Compensation 1 Describe the differences between job analysis and job evaluation and how these practices help establish internally consistent job structures. A job analysis is a step-by-step specification of an employment position's requirements, functions, and procedures. Just as a seed cannot blossom into a flower unless the ground is properly prepared, many human resource management (HRM) practices cannot blossom into competitive advantage unless grounded on an adequate job analysis. A job evaluation is the process of analyzing and accessing the various jobs systematically to ascertain their relative worth in an organization. Job is evaluated on the basis of their content and is placed in the order of their importance. To achieve internal consistency, a firm's employees must believe that all jobs are paid what they are "worth." In other words, they must be confident that company pay rates reflect the overall importance of each person's job to the success of the organization. Because some jobs afford a greater opportunity than others to contribute, those holding such jobs should receive greater pay. For instance, most would agree that nurses should be paid more than orderlies because their work is more important; that is, it contributes more to patient care, which is a primary goal of hospitals. Compensation 2 For pay rates...
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