Health Insurance
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. ...
Benefit Basics
What types of employee benefits are required by federal law?
- Social security and medicare contributions. Most employers don’t consider social security and medicare contributions to be employee benefits, but they are.
- Workers' compensation insurance. Workers' compensation insurance is a form of insurance mandated by the U.S. ...
- Minimum wage and overtime pay. ...
- Unemployment compensation contributions. ...
Legal Matters
What are the four major types of employee benefits?
- Insurance. This category includes health insurance (dental, medical, vision), life insurance, and disability insurance.
- Retirement. Retirement benefits help employees feel more secure about their future after retirement. ...
- Time off. ...
- Additional compensation. ...
Expensive Errors
When you administer benefits, you’re responsible for:
- Creating the benefits program
- Enrolling new employees
- Communicating what benefits are available
- Helping employees update benefits selections
- Liaising with providers to ensure your benefits are competitive
- Ensuring benefit providers are paid each month
- Making sure the correct amount is withheld from each employee’s paycheck
Cost Containment
What are the most common employee benefits?
What are the different types of employee benefits?
What employee benefits do you normally have?
Why you should offer employee perks as benefits?
What are the 4 major types of employee benefits?
There are four major types of employee benefits many employers offer: medical insurance, life insurance, disability insurance, and retirement plans. Below, we've loosely categorized these types of employee benefits and given a basic definition of each.
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.
What are 3 examples of employee benefits?
What types of employee benefits are considered an industry standard?Health insurance. Health insurance is one of the most popular employee benefits offered by employers. ... Family and medical leave (FMLA) ... Disability insurance. ... Retirement savings. ... Life insurance.
What should be included in a benefits package?
Benefit packages may offer such things as a car allowance, cellphone, gym membership or travel reimbursements to lure top talent from around the world, but they usually start with health insurance for employees, and if possible, for their families. Sometimes, a health care flexible spending account is included.
What are the most common types of employee benefits?
The most common benefits are medical, disability, and life insurance; retirement benefits; paid time off; and fringe benefits. Benefits can be quite valuable. Medical insurance alone can cost several hundred dollars a month. That's why it's important to consider benefits as part of your total compensation.
What are the most popular employee benefits?
Paid time off, flexibility/remote working options and paid family leave are the top non-insurance benefits employees want, according to a new survey of 1,500 U.S. workers by benefits provider Unum.
What are 5 examples of benefits?
Examples of benefits within a package may include:Medical insurance.Dental and vision coverage.Profit-sharing.Stock options.Retirement benefits.Wellness benefits such as reimbursement for gym memberships or race registrations, weight loss programs, and smoking cessation.More items...•
What is considered good benefits from an employer?
While health, dental, vision, PTO, and retirement benefits are some of the most well-known employee benefits, they are far from the only ones. Another benefit to consider adding to your benefits package is life insurance.
What are employee benefits?
Before we get into the nitty-gritty of employee benefits (or fringe benefits), let’s define the term:
Why do employers offer benefits to employees?
And with good reason: they’re one of the most basic employee engagement and retention strategies, and they support talent attraction as well.
What are the four major types of employee benefits?
Many cite these benefits as health insurance, life insurance, disability insurance and retirement plans . However, this view is focused on the different types of insurance, and neglects other equally major benefits. In an effort to expand our scope, we’ve grouped insurance benefits together and listed three other major types of benefits offered by employers:
How much do benefits cost a company?
According to a 2019 report by the Bureau of Labor Statistics, employee benefits in the U.S. make up 30% of total compensation costs. Insurance benefits accounted for 8% of compensation costs and legally required benefits were at 7.7%.
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.
Why are there arguments against monetary benefits?
There are some arguments against monetary benefits though; financial rewards may sometimes spur unethical behavior or create envy among coworkers. For example, a salesperson who knows that the most successful salesperson of the month will get higher commission might resort to stealing prospects from coworkers or otherwise contributing to an unhealthily competitive atmosphere in the office. To prevent these outcomes, make sure you give everyone the same chances to earn bonuses and make the criteria for those bonuses transparent to all, and be suspicious of discrepancies in employee results.
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.
What are the different types of employee benefits?
There are four major types of employee benefits many employers offer: medical insurance, life insurance, disability insurance, and retirement plans. Below, we’ve loosely categorized these types of employee benefits and given a basic definition of each.
What does medical insurance cover?
It covers things including hospital and doctor visits, surgeries, and prescriptions. Employers usually cover a portion of this premium. 2. Dental Insurance.
What is HRA in health insurance?
Health Reimbursement Account (HRA) Health Reimbursement Accounts (HRAs), sometimes called Health Reimbursement Arrangements, are group health plans funded by you, the employer, from which your employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year.
What is life insurance?
Life Insurance. A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. 11. Accidental Death & Dismemberment Insurance.
What is disability insurance?
Disability Insurance. Disability insurance pays a portion of an employee’s income if they can’t work for an extended period because of an illness or injury. There are two types of disability insurance you can offer: short-term and long-term.
What is an EAP?
15. Employee Assistance Program (EAP)#N#According to SHRM, “An employee assistance program (EAP) is a work-based intervention program designed to identify and assist employees in resolving personal problems (e.g., marital, financial or emotional problems; family issues; substance/alcohol abuse) that may be adversely affecting the employee’s performance.”
Why do small businesses partner with PEO?
As competition for finding and keeping talented employees grows , it’s imperative that small business owners and leaders are offering the best possible benefits to employees. When you partner with a PEO, your company can get benefits that put you in the ring with larger companies—without going over budget. To see how we can help you improve your company’s benefit offerings, contact us to schedule a meeting.
Why is it important to have employee benefits?
All this goes to prove the importance of employee benefits in keeping your employees happy. Ensuring your employees are healthy and well keeps them motivated and loyal. It helps them focus more on their work, improves performance, and increases their overall quality of life.
Why do you need benefits when you join the workforce?
Once employees join your workforce, benefits also help retain them. An employee who feels valued and taken care of is less likely to jump ship , even if lured with a competitor’s higher salary.
Why should companies offer perks?
While offering perks is a good way to get them to consider a position, experts advise that companies should focus more on long-term improvement of morale and workplace culture than simple, commonplace gestures like a dinner voucher or impromptu day off.
What are the benefits of Google?
The most common benefits include overtime, medical insurance, and retirement benefits. However, companies have been known to take it a notch higher and include other benefits. For example, Google is known for its extensive and unconventional packages such as free gourmet meals, in-house massages, and dry cleaning on campus.
Why do companies need to do more than just offer state mandated benefits?
Companies need to do more than just offer state-mandated benefits if they want to stay competitive with their employees. One pertinent example is that job applicants’ top query is “is medical insurance part of the employee health benefits offered in this position?” Fail to provide it, and top candidates will pass on the job.
Why is Eden Health important?
Eden Health provides one platform to meet your employees’ medical needs, giving them access to a care team of medical providers, behavioral health specialists, and insurance experts anytime they need it.
What are some examples of things that employers can do to boost morale?
Game nights, running groups, and work anniversary gifts are all examples of things employers can do to boost workplace morale.
What are employee benefits?
Employee benefits are a form of compensation offered in addition to a salary or wages. Common non-wage benefits include medical, disability, and life insurance, retirement savings, paid time off, and sick leave.
Can an employer provide on-site childcare?
An employer might offer on-site childcare facilities. Some allocate specified dollar amounts for child and elder care. Other companies offer programs so that employees can set aside funds for these expenses from pre-tax pay.
What is the best benefit for an employee?
Insurance. Insurance is a foundational benefit for most employee benefits packages and can be offered in several forms, such as: Health insurance : Health insurance is often considered the preferred benefit for most employees. If you can only afford to offer employees one benefit, you should make it health insurance .
How to manage employee benefits?
Whether an external resource like a benefits broker or an internal staff member such as a benefits administrator, working with someone that specializes in managing benefits would allow you to delegate the responsibility to someone that can devote more time, energy and expertise. These individuals focus on helping company’s negotiate benefit prices, calculate costs and gains and determining the best benefits packages to meet the needs of the company as well as its employees.
What is a benefits package?
Employee benefits are the additional methods for tangible and intangible compensation offered to employees separate from their base salaries or wages. In other words, anything that is unrelated to wage gain but that is offered as a part of an employee’s position could be considered an employee benefit. The job benefits that make up these packages will vary depending on the country, industry and values of the employer. For example, a company may pay for an annual company-wide retreat as part of their benefits package to encourage adventure and interpersonal relationships among their staff.
How to keep employees informed about benefits?
In order to keep employees informed about the wonderful benefits that are offered, it’s a good idea to incorporate a section in the employee handbook that details important information regarding their benefits. Monitor the needs and wishes of the employees.
What is life insurance?
Life insurance: This is an appreciated addition to an employee benefits package. It shows employees that their employer cares about them as well as their families by providing a sum to the family that will help them cover funeral costs if the employee dies.
What is a retirement plan?
Usually in the form of a 401 (k) plan, retirement plans are among the basic benefits that are necessary when building a benefits package that will attract and keep qualified employees in your company.
What is additional compensation?
Additional compensation. This is an employee benefit that encompasses any money that is offered apart from an employee’s normal wages. It is usually used as part of an incentive program that is designed to encourage productivity and performance. It can include things like:
What are the benefits that employers are required to provide?
This article outlines what benefits employers are legally required to provide. 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 Are Mandatory Employee Benefits?
Employee benefits fall into two categories: those required by law and those an employer chooses to offer voluntarily. The U.S. Bureau of Labor Statistics states that " [l]egally required benefits provide workers and their families with retirement income and medical care, mitigate economic hardship resulting from the loss of work and disability, and cover liabilities resulting from workplace injuries and illnesses." Federal mandatory employee benefits include:
How many hours of service is required for ERISA?
Employee Retirement Income Security Act (ERISA) — "1,000 Hour Rule:" Even if part-time employees are not eligible for other benefits offerings, this provision of ERISA requires employers to allow any employees who complete 1,000 hours of service within a 12-month period to participate in any retirement plan offered to other employees.
How many hours do you have to work to get health insurance?
Affordable Care Act (ACA): While most employers don't consider an employee "full-time" for benefits qualification unless they work at least 40 hours per week, under the ACA, applicable large employers must offer affordable and adequate health insurance to any employees who average at least 30 hours per week, or at least 130 hours per month to avoid a potential assessment if at least one full-time employee receives a premium tax credit.
How much Medicare tax do employers have to withhold?
Employers must also withhold Medicare tax at 1.45 percent of gross compensation, and an additional 0.9 percent of compensation in excess of a threshold amount based on the employee’s filing status if an employee’s compensation exceeds $200,000 (there is no wage base for Medicare).
What is self insurance?
Self-insurance: The employer opts to pay directly for any medical bills and ongoing income for any employees who incur extended injuries or illnesses on the job, and the employer can demonstrate the financial resources to do so if a workplace injury or illness occurs.
What are the perquisites of a job?
These can include paid vacation life and disability insurance (in some states, short-term disability leave is mandatory), 401 (k) retirement savings plans, education assistance, wellness programs, and child care assistance.
What is employee benefits?
Employee benefits are types of compensation companies provide their staff in addition to a salary. Certain federal and state laws may require employers to offer benefits such as:
Why are employee benefits important?
Employee benefits increase the value of working for a certain company and can improve your or your team members' health and quality of life. When applying for jobs, candidates may look at the benefits each organization offers and take those into consideration along with salary when deciding where they want to work. Advantages of employee benefits include:
What are some of the most important benefits to employees?
The most important benefits for employees are generally those that support their personal and financial health. The more comprehensive a company's benefits package, the more competitive it's likely to be in the workforce. Some of the most popular and important benefits to employees include:
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 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 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.
What are the benefits of a company?
Companies can choose whether to offer other common benefits such as paid vacation, health insurance, life insurance and retirement plans. Organizations typically provide additional benefits to be competitive when hiring and to keep their employees happy, healthy and productive.
What are employee fringe benefits?
An employee fringe benefit is any sort of compensation outside of an employee’s regular pay. Similarly, it can be offered in forms other than standard pay such as employee discounts, access to a company vehicle, employee meals, etc.
Health-Related Benefits
This includes your standard health insurance benefits that are in some cases mandated. Similarly, these benefits can also include a variety of options such as flexible spending accounts , health savings accounts, long & short-term disability, and group term life insurance.
Retirement Plans
This includes employer-sponsored 401 (k) and Roth IRAs. Even covering the cost of a financial planner to work with their employees to develop personal financial strategies is a fringe benefits. Some states even have regulations regarding employer-sponsored retirement plans.
Bonuses & Awards
Bonuses are a common form of additional benefits and offered to an employee on a timed schedule or by merit and achievements. You can award them in the form of additional pay or other tangible forms such as trips or physical items like trophies and certificates.
Transportation Benefits
In some cities, employers can offer their employees pre-taxed plans that cover traveling expenses. Similarly, some employers offer a car allowance for employees that use their personal vehicle for work related duties (excluding commuting).
