Understanding Your Employee Benefits
- Health Insurance. The most common benefit is health insurance. ...
- Employer Match. Employer match is another great benefit. ...
- Paid Vacation and Sick Time. Paid vacation and sick days are another great benefit. ...
- Stock Options. Your employer may offer stock options, as well. ...
- Flexible Spending Accounts. ...
- Other Insurance Options. ...
- Health Insurance. Peter Dazeley/Photographer's Choice/Getty Images. ...
- Employer Match. Employer match is another great benefit. ...
- Paid Vacation and Sick Time. Paid vacation and sick days are another great benefit. ...
- Life Insurance. ...
- Stock Options. ...
- Flexible Spending Accounts. ...
- Other Insurance Options.
What you should know about employee benefits?
- Ireland enables free access to the European Union.
- It is the only English-speaking country in the Eurozone.
- After acquiring Irish citizenship, Indian professionals can work in the United Kingdom, under the 'Common Travel Area Agreement' between Ireland and the UK.
What do you need to know about employee benefits?
- This involves an employer helping to set up and contribute to funding their employee’s retirement, usually in the form of a workplace pension.
- Income protection
- Holiday allowance (a minimum of 5.6 weeks per year)
Do your employees understand their benefits?
To assist your employees in fully comprehending their benefits package, consider providing a total compensation (benefit) statement. This communication highlights the monetary value of your benefits package, including those perks that may be overshadowed by traditional benefits, to give an overall view of your benefits package.
What are the most common employee benefits?
Useful contacts and further reading
- Recent developments. More recently, some employers have adopted a more individualistic approach to employee reward, transferring more of the risk (and, potentially, reward) and cost of the provision to their ...
- Company cars and car allowances. ...
- Other benefits. ...
- Flexible and voluntary benefits. ...
- Contacts
- Books and reports. ...
- Journal articles. ...
How do you explain employee benefits?
Employee benefits are any benefits provided to employees in addition to their base salaries and wages. A complete employee benefits package may include health insurance, life insurance, paid time off (PTO), profit sharing, retirement benefits, and more.
How do you evaluate employee benefits?
How to Evaluate a Benefits Package Before You Accept a Job OfferLook for 401(k)s with matching contributions. ... See if the vacation policy is negotiable. ... Understand how the bonuses work. ... Look for affordable insurance options. ... Calculate the monetary value of other perks, too.
What are 4 common employee benefits?
There are four major types of employee benefits many employers offer: medical insurance, life insurance, disability insurance, and retirement plans.
What are 3 examples of employee benefits?
The most common types of employee benefits offered today are:Medical insurance.Life insurance.Disability insurance.Retirement contributions and pension plans.
How do you assess a benefit package?
Evaluating employee benefits packages: 7 tips to considerWhat is the cost share? ... What is covered? ... How extensive is the health care provider network? ... How much are deductibles, co-pays, co-insurance, and premiums? ... What benefits do you and your employees absolutely need? ... What is the reputation of the insurance company?
How can employee benefits be improved?
Here are nine benefits to cover every aspect of employee well-being and increase the effectiveness of your workforce:Recognition. ... Cost-Free Training and Education. ... Flexible Schedules/Compressed Workweeks. ... Remote Work. ... Parental Leave. ... Paid Time Off for Volunteering. ... Pet-Friendly Offices. ... Gym Memberships/Fitness Classes.More items...
What are 5 employee benefits?
Here is a list of the top five types of benefits employers can offer to employees - each can be a valuable tool for recruiting and retaining employees.1) Health Benefits. ... 2) Retirement. ... 3) Workplace Flexibility. ... 4) Wellness Program. ... 5) Tuition Reimbursement.
Which employee benefits are most important?
In a Robert Half survey of more than 1,000 candidates in the United States, 76% of respondents ranked health insurance as an essential benefit. Paid time off — Whether it's for vacation, illness or bereavement, paid time off (PTO) is highly valued by employees and a great way to combat employee burnout.
What benefits should an employer offer?
Vacation, health insurance, long-term disability coverage, tuition reimbursement, and retirement savings plans are just a few of the many benefits employers may offer employees.
What benefits should I ask for?
Consider hiring bonuses, vacation time, retirement plans, sick leave, insurance, and other company benefits as open for negotiation as well. If you are planning to go back to school, tuition reimbursement may be just as important as health insurance.
How does employee benefit affect HR?
Employee benefits have a significant impact on the administrative aspect of HR, especially when regulatory issues are involved. But there are ways to manage benefit plans more effectively to save time and reduce the possibility of mistakes. Here are five things to consider:
What is retirement benefit?
Retirement. Retirement benefits help employees feel more secure about their future after retirement. In the U.S., for example, a common benefit is the 401 (k) in which both company and employee make defined contributions to the employee’s account on a regular basis.
Why do employers pay attention to demographics?
Also, some employers pay attention to the demographics of their employee base to give everyone the benefits they need most based on their characteristics. For example, in order to retain and engage millennials, businesses may offer them benefits such as student loan repayment support and co-sign support for auto loans.
What is fringe benefit?
Before we get into the nitty-gritty of employee benefits (or fringe benefits), let’s define the term: Employee benefits are any kind of tangible or intangible compensation given to employees apart from base wages or base salaries. This employee benefits definition points to examples of job benefits such as insurance (including medical, dental, ...
How do employees choose to invest?
Employees choose how to invest contributions, or how much to contribute from their paycheck through pre-tax deductions. Employers may also contribute, in some cases by matching a certain percentage of employees’ contributions. At retirement, employees receive the balance in their account.
How to find the right software for HR?
To find the right software, do your research and make a compelling business case. Measure benefits and costs diligently . This will be the responsibility of the finance department, but it’s important for HR to keep track of rising or plummeting costs and gains.
Does disability insurance cover long term disability?
Disability insurance may cover long-term and short-term disability or illness. For example, if an employee gets sick, they can receive payments for as long as their sickness lasts. In the U.S., some employers may sometimes use short-term disability policies to fund paid maternity leave for female employees.
What is employer provided life insurance?
Employer-provided life insurance is meant to compensate your survivors for your lost wages and income should you die while employed in your new job. If you are single and not supporting anyone else, you may not require life insurance.
What to do if you don't understand your pension?
If you are offered a benefit that you do not understand, companies usually have websites set up to explain what they offer. If not, check with human resources or the benefits administrator.
Can I contribute to 401(k) for retirement?
The IRS allows you to contribute up to a set maximum, which changes from year to year. Many experts agree that it is best to contribute as much as you can afford right away instead of going back and trying to catch up later when you are already accustomed to a bigger budget. In the future, you'll be glad that you did. 1
Can employers match employee contributions?
Many employers match employee contributions up to a certain amount, based on how much you contribute annually. Not taking advantage of an employer match is the equivalent of leaving "free money" on the table.
Can I see a doctor on my PPO?
The doctors still have relationships with the insurance company, but you can see a doctor that may not be on the PPO's list and still receive partially covered services. You may have to accept more out-of-pocket expenses to do so, but there are fewer restrictions. 2.
What can health benefits providers do?
Health benefits providers have valuable experience in communicating to employees. Ask for printed materials, websites and hotlines that can help employees take advantage of choices available. Health benefits specialists can focus on the notices and communications required under applicable laws and regulations.
Who can help employees enroll in health insurance?
Insurance carriers, agents and brokers, financial advisers and third-party administrators of benefits programs can also provide information and education about options and enrollment processes for health plans and other benefits available to your employees. They can help workers enroll as well.
How to leverage benefits?
You want to fully leverage the benefits you provide employees. Make sure there is an open line of communication with employees. Explaining benefits is only half the battle. Survey your employees—perhaps quarterly—to understand their satisfaction with their benefits.
Is employee benefits more important than salary?
The first thing employees are looking for during the hiring process is employee benefits. Yes, the benefits package is sometimes even more important than salary.
What is short term disability?
Short-term disability is a benefit that ensures that you have some income replacement in the event of a non-job-related injury or illness that temporarily prevents you from working. This benefit can cover items such as: childbirth, as an extension of or in combination with a maternity leave program; injury sustained from an accident, an illness requiring treatment or a major surgery with a long period of recovery. There is no standard definition for disability, so it is important to review your plan documents to understand what will be covered by your specific plan. If you have underlying condition that may ultimately cause you to miss time at work, then it is critical for you to review your plan documents to see how pre-existing conditions are handled and how disability is defined so there are no surprises when the time comes that you actually need the benefit.
Is salary an employee benefit?
While salary is one of the most important employee benefits to consider for any job, it certainly isn’t everything. Whether you’re evaluating job offers or simply reviewing options at your current workplace, understanding everything available to you is the key to properly evaluating a job opportunity and ensuring that you don’t leave anything on the table.
Why are benefits important?
Benefits can improve focus and productivity. A good benefits package that offers perks such as paid time off, health insurance and disability insurance can prevent employees from worrying about things like finances, medical expenses and child care. If employees are more confident about personal matters before, during or after work, they can better focus on their tasks and career advancement.
What is a good benefits package?
Benefits such as paid time off, workplace perks, wellness programs and tuition reimbursement can make employees feel valued. This can lead to employees who are happy to be in their job, loyal to the company and motivated to do good work.
What are the benefits of retirement?
Some companies offer retirement benefits such as employee pension plans and 401 (k)s, which allow employees to put a pretax percentage of their earnings toward their retirement savings. An employer might contribute to or match a certain amount of those funds. Other types of retirement plans include profit-sharing, stock bonus, employee stock ownership and cash balance plans.
What is the benefit of having more than 50 employees?
The Affordable Care Act requires companies with more than 50 employees to provide health insurance to 95% of full-time employees or pay a significant fee to the IRS.
What are the benefits of working from home?
Work-life balance, or the harmony between your career and your personal life, has become increasingly important to employees. Benefits that improve work-life balance include vacation time, unlimited or generous paid time off, flexible hours and the ability to work from home. These types of benefits can help reduce employee stress and fatigue and prevent burnout. Employees are likely to be more productive at work and at home as a result.
Plans
Health Insurance
- You may have to choose between a Health Maintenance Organization (HMO) and a Preferred Provider Option (PPO) for medical insurance. An HMO allows you to go to doctors that are contracted with a specific insurance company. If you have a specific doctor you like to use, ask to see the list of doctors on that plan or go to the HMO website to find a list of its providers. HMOs …
Life and Disability Insurance
- Employer-provided life insuranceis meant to compensate your survivors for your lost wages and income should you die while employed in your new job. If you are single and not supporting anyone else, you may not require life insurance. If you have a family to support, you need to think about how much they would need to survive in the event of your death. Disability insurance, on t…
Other Employee Benefits
- You may be wondering how your company benefits compare to those offered by other companies. Benefits can vary widely from company to company. The most common are listed above. You might also be offered some of the following: 1. Health savings account 2. Flexible spending account 3. Eldercarebenefits 4. Employee discounts 5. Wellness benefits 6. Cou...
Withholding Taxes
- In addition to providing benefits, many companies withhold taxes for you and you'll need to fill out a form for that too. They know how much to take out based on your completed IRS W-4 Form. On this form, you will need to fill in your name, address, Social Security number, and how many allowances you want to claim.3 You are considered one allowance. If you are married, then you …
Making Changes to Employee Benefits
- Many companies allow you to change your choices periodically. Often, your 401(k) contribution amount and investment choices can be changed on a fairly regular basis, but the medical and life insurance choices may be set up so that you can only change them once or year. Check with your benefits administrator if you think you need to make some changes. Making inappropriate choic…
The Bottom Line
- Many people make mistakes and inappropriate choices when filling out their benefits forms. Fortunately, you can still go back and make changes down the road. Younger employees may not require nearly as many insurance choices as an older employee. Younger employees also have an opportunity to build a substantial retirement nest egg. Regardless of age, it's always a good ide…