Any perks that an employee receives in addition to their salary can be of great value. An employer who offers benefits to his employees shows that he is investing not only in their overall health but in their future. The kinds of employee benefits a certain employer is offering can attract and retain a talent. These benefits can also set him apart from his competitors.
These are the kinds of benefits that are included in an employee’s gross income. These benefits given to employees are usually subject to income tax withholding and employment taxes. Some of these benefits include cars that the employer will provide, flights on company’s aircraft, free or discounted business flights, membership in country clubs or other social clubs, discounts on services or properties, tickets to sporting or entertainment events among others. There are rules governing the value employers and employees place on the fringe benefits.
According to the Department of Labor’s Office of Workers’ Compensation Program, there are four main disability compensation programs. Compensation & benefits provide wage replacement benefits, vocational rehabilitation, medical treatment and other benefits to federal workers or their dependents in the event of an inquiry at work or those who acquire an occupational disease.
Employees of privately owned companies or state and local government agencies should contact their state worker’s compensation board immediately they are injured while on the job. Several programs have been put in place by the department of labor to prevent work-related injuries or illnesses.
An employer may also offer to pay his employee’s cost of an accident or employee insurance plan, which also cover his spouse and dependents. These kinds of benefits provided to employees allow employees and their families take care of their most essential medical needs. Medical benefits are some of the most important employee benefits that an employer can provide. They are, however, regulated by the Department of Labor’s Health Benefits under the Consolidated Omnibus Budget Reconciliation ACT (COBRA).
These are basically some funds set aside to provide employees with an income or pension upon their retirement. Retirement benefits are important types of corporate employee benefits as they give employees hope of having something to live on once their careers end. The types of benefits employees can receive under a retirement plan include:
A lump sum payment- distribution of a larger amount of money in a lump sum will require a written consent from the participant.
Installment payments: these are made at regular intervals, for a specified period of time or for a specified amount of money until the account is depleted.
Annuity payments: these are payments made from a defined benefit plan at regular intervals within a year.
There are many common work benefits that employers must consider when trying to attract and retain an important talent. It is important to speak to an employee benefits advisor or specialist to understand better the benefits packages and solutions your business should commit to.
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