Description: The article covers the topic on employee benefits. The content centers on HR Basics related to employee benefits. There will be a series of short lessons designed to highlight what you need to know about a particular human resource management topic, the content refers to mandatory and voluntary employee benefits.
HR basics is a series of short lessons designed to highlight what you need to know about a particular human resource management topic, in today’s HR basics, we explore mandatory and voluntary employee benefits and their administration employee benefits include all compensation other than hourly wages or base salary employee benefits are the program’s.
An employer uses to support the cash compensation, employees receive these health income protection savings and retirement programs provide security for employees and their families mandatory benefits in the United States include Social Security workers, compensation unemployment compensation and Family and Medical Leave additionally beginning in 2015.
Employers are responsible for that, the employer shared responsibility provisions of the Affordable Care Act income discontinuity caused by the Great Depression led to the Social Security Act as a means to protect families from financial devastation in the event of unemployment.
The Social Security Act was one of the first social insurance programs implemented in the United States. Social Security provides the foundation of basic security for American workers and their families.
Its purpose is to provide retired workers with a continuous stream of income after their retirement. Social Security is funded by employer and employee payroll taxes workers compensation is a form of no-fault insurance that covers medical care for work-related injuries providing temporary permanent partial and permanent total and survivor of disability benefits workers.
Compensation insurance programs are run by individual states and are designed to cover employee expenses incurred in work-related accidents and injuries typically workers compensation provides cash benefits and medical care to employees when they suffer injuries or illnesses related to their employment.
It also provides survivor benefits to dependents of workers who died due to work-related accidents, workers compensation begins paying employees medical care immediately after a workplace injury occurs.
The national federal state unemployment insurance program provides weekly income to individuals who become unemployed through no fault of their own each state administers, its own program and develops guidelines with parameters set by the federal government.
Almost all workers are covered by the program although the eligibility requirements are determined by state law, individuals must meet several criteria to qualify for unemployment benefits, including limited voluntary employment or involuntary unemployment, minimum earnings and employment requirements, a waiting period in most states, the capacity to work and availability to do so.
Actively seeking suitable work funding for benefits is based on an unemployment tax that employers are required to pay the tax rate, each employer pay is determined by individual states and based on the number of employment claims filed against the employer.
The Family Medical Leave Act requires covered employers to provide employees job protected and unpaid leave for qualified medical and family reasons qualified medical and family reasons include personal or family illness family military leave pregnancy adoption or foster care placement of a child.
The FMLA is administered by the wage and hour division of the Department of Labor and entitles eligible employees and covered employers to take unpaid job protected leave for twelve work weeks in a 12-month period.
The FMLA requires that employers maintain employees health benefits during the leave and restore employees to their same or equivalent job after the leave ends the law sets requirements for notice both by the employee and the employer and provides employers with the right to require certification of the need from FMLA leave.
The Affordable Care Act extends health care to many Americans not covered by an employer or other private plan employers with 50 full-time, employees in a calendar year are required to comply with the employer shared responsibility ability provisions of the act for purposes of the Affordable Care Act.
A full-time employee is someone who works an average of 30 or more hours per week, employers must offer affordable health coverage to their full-time employees and their dependents or they may be subject to the employer shared responsibility penalty.
The health care coverage offered by an employer must provide a minimum level of coverage, the coverage is considered to be fordable as long as the employees share, the cost is less than 9.5 percent of the employees annual household income.
Employers may be subject to penalty, one full-time employee is receiving a premium tax credit, because they’re purchasing individual coverage in an exchange which is also known as a health insurance marketplace voluntary benefits sometimes referred to as discretionary benefits are those.
An employer voluntary chooses to offer its employees voluntary benefits primarily focusing on health wellness and welfare life management and retirement, many of these benefits would be extremely expensive for employees.
If they had to purchase them outside the group plans provided by their employers even if employees have to pay a portion of the cost, a group plan lowers the amount considerably.
The US Bureau of Labor Statistics reported the following information about employees access to voluntary benefits, 86% of full-time and 23% of part-time workers received employer provided medical care, 74% of full-time and 37% of part-time workers had access to a retirement plan and 74% of full-time and 24% of part-time workers received paid sick leave benefits.
Flexible benefit plans allow employees to select from a pool of choices, some or all of which may be tax advantaged potential choices include cash retirement plan contributions vacation days and insurance.
These are also called cafeteria plans, traditional benefits contain the same set of benefits for each employee, this creates administrative ease and represents a one-size-fits-all approach increasingly.
However, companies are replacing these fixed plans with cafeteria benefit plan which gives employees the choice to select the benefits they need, a robust benefits package can be the difference in your total reward strategy.
But the cost of benefits is rising each year and providing a benefit package that helps you attract retain and motivate talented people get harder all the time methods to assist companies in managing.
The cost of benefits can include employee contributions waiting periods high deductible plans and a wellness focus, each of these strategies holds promise for lowering cost of your benefits plan, the key is finding the ones that best suit your organizational culture and employee needs you.