Employee Benefits

Disability Insurance

When a worker becomes disabled or is incapacitated due to illness or injury, disability insurance will replace all or part their income. This benefit is not commonly offered. Two main kinds of disability insurance are available:

• Short-term disability insurance begins right away or within a few weeks of an accident, illness, or some other disability. For example, someone hurt in a car accident would be offered a few paid weeks to recover.
• Long-term disability insurance provides benefits to an employee when a long-term or permanent illness, injury, or disability leaves the individual unable to perform his or her job. For example, an employee with spinal injuries could be entitled to long-term disability benefits until retirement age.

Low-Cost Benefits For Employees

Many businesses don't have the financial resources and the ability to offer substantial benefits for their employees. However, employees can be motivated and encouraged by offering benefits.

However, employee benefits can be non-monetary so you don't have to burn a hole in the pocket.

Below are 11 benefits that small businesses can enjoy, even if they have a limited budget.

• Flexible schedule
• Get Free Snacks
• Casual dress code
• Events Tickets
• Telecommuting
• Bring Your Pet to Work Days
• Earn Paid Time to Volunteer
• Maternity and Paternity Leave
• New Hire Welcome Packages
• Movie Nights
• Work benefits - Office Olympics, Library

Cost containment

Some small-business owners have had to reduce the number of benefits that they provide due to rising health insurance costs. Carriers that write policies for small businesses tend to charge very high premiums. They often require detailed medical information from each employee. The carrier might refuse to issue a policy if there is a group member with a pre-existing medical condition. The carrier can also cancel a policy if a company member becomes very ill.

Some states have made it mandatory that certain benefits be included in any employer's health care plans. Employers who can't afford to comply often have to cut out insurance altogether. The good news: Many states are tying to ease the burden by passing laws that make it easier for small businesses to get health insurance and that prohibit insurance carriers from discriminating against small firms. (MSAs, described above, are in part a response to the problems small businesses face.) The following states make some special provision concerning small employers and health insurance: California, Connecticut, Illinois, Iowa, Kansas, Maine, Massachusetts, New Jersey, North Carolina, Oregon, South Carolina, Tennessee, Wisconsin and Wyoming.

What can small businesses do until more legislation is passed? You can cut expenses without affecting your employee's insurance. To benefit from economies of scale, small business owners are joining forces with entrepreneurs to gain greater influence with insurers.

Many trade associations offer health insurance plans for small-business owners and their employees at lower rates. Your business may have only five employees, but united with the other, say, 9,000 association members and their 65,000 employees, you have substantial clout. Your business cannot terminate its coverage if the carrier does not cancel the entire association.

Associations are able to negotiate lower rates and improved coverage because the carrier doesn't want to lose such a big chunk of business. So even a small company with only one employee can have access to the same health-care options as large companies.

There are other options. In some states, business owners or groups have set up health-insurance networks among businesses that have nothing in common but their size and their location. For information about similar programs, contact your chamber of commerce.

Some people have been ripped off by unscrupulous organizations supposedly peddling "group" insurance plans at prices 20 to 40 percent below the going rate. Because these plans are not supported by adequate cash reserves, they don't cover all claims. These plans are often called lofty names, which suggest that they have a greater association with smaller employees.

How to protect yourself from a scam? Here are some tips:

• Compare prices. If it sounds too good to be true, it probably is. Ask for references from other companies that have bought from the plan. What was the speed at which claims were paid by the insurer? What length of time has the referee been with the insurance company? If it's less than a few months, that's not a good sign.

Medical Insurance

One of the most popular employee benefits is medical insurance. However, there's really no general standard of medical insurance.

This is because the specifications of insurance policies differ from provider to provider. Additionally, the term "medical insurance" is a broad umbrella that only covers certain types of policies.

• Healthcare insurance
• Vision insurance
• Dental insurance

Here's a brief overview of the types of benefits. Bear in mind that the details will depend largely on your insurance provider.

Healthcare insurance

General health insurance policies cover healthcare. Here are a few examples:

• Hostel accommodation
• Yearly physicals
• Ambulance services
• Resetting and casting a broken leg
• Fees for doctors
• Laboratory services
• Treating an ear infection
• Antibiotics for strep throat

Prescription coverage can vary and is an important consideration for employees of all ages. They will want to know whether coverage extends to their preferred prescriptions and delivery methods that fit their lifestyle.

Vision and dental are not included in many healthcare plans. This is why they are sometimes considered separate policies. Dental and vision are typically considered optional premiums and are generally on top of standard plans.

Vision insurance

Vision insurance is an insurance policy that covers medical expenses relating to eyesight. It could include:

• Annual eye exams: How much?
• Contributions towards new contacts or glasses
• Medically necessary surgery (often, surgery such as LASIK is considered elective and therefore not covered)

Employees likely want to know how broad glasses and lens coverage is and whether it extends to frames from vendors they find stylish or lens providers that are convenient and fit their lifestyle.

Dental insurance

It covers all dental expenses. Dental insurance is very easy to understand. Employers can cover dental insurance in three different ways. Plans typically cover 100% of preventative dental costs but only half of basic services and major procedures such as dental surgery.

Examples of costs that dental insurance generally covers are:

• Tooth extraction
• Treatment of gum disease

In addition, employers can also opt to provide a health spending account. Each account has its own unique features. There are three types of accounts.

Life insurance is another common benefit that employees can receive to attract new staff and provide protection and support for them.

As part of an employee benefit package, there are several types of life insurance policies available.

Paid Vacation And Sick Time

These days, it's basically unheard of for a company to not offer at least some paid time off (PTO) in their employee benefits package. Full-time employees are entitled to two weeks of PTO (10 days). Some companies also allow full-time employees to receive additional PTO after they have been with the company for an extended period (ex., another week after five years).

While some companies prefer to consolidate their PTO in one place, others separate it into personal, vacation and sick. Both ways to structure these benefits have their pros and cons. You'll need to choose the best option for you business.

What Types Of Employee Benefits Are Most Appreciated Among The Different Generations?

Different generations of workers (often) want different things. This is what we already saw in our article on generational differences at work.

As each generation is in a different stage of their lives, it's no surprise that they tend to appreciate different types of employee benefits. Young Millennial parents may have different priorities than a near-retirement Baby Boomer.

The Benify study separates employee benefits into two categories: those that employees find most important and those they most appreciate. Let's see what the overview looks like per generation.

Two things immediately stand out when we look at what benefits people find important. First, and most importantly, is that as people age, pension plans become more important. This is something that makes sense as graduates who just entered the workforce probably won't be thinking about their retirement in 40+ years yet...

Second, skills development is something worth noting. Unsurprisingly, the development of new skills is more important for younger generations - as they will be more affected by technological developments - than it is for Baby Boomers.

Working hours and time off are important to all employees regardless of age.

The top five benefits most valued by employees are slightly different when we compare them to the other generations. Food & drink and mobility suddenly appear on different lists. The number one among pretty much every generation, however, is health & wellness.

It is interesting to note that Generation Z has financial wellness in its top five most valued employee benefits. Financial wellness is likely to become an increasingly important benefit for employees as companies hire more people from Generation Z.

These are the Top 10 Benefits for Employees in Worldwide.

• Private Health Care Plan (Medical, Dental & Vision)
• Retirement / Pension plans
• Training and development
• Stock options plans
• Flexible hours and work from home
• Snacks and food
• Insurance for life
• Extended Leave (Vacation or Sick)
• Bonuses / Awards / Gifts
• Company equipment (including vehicles, laptops, phones)

Not only are the benefits most sought-after, but there may also be benefits specific to particular areas. For example, Australians can receive novated leasing as a benefit, enabling them to lease cars with their employer taking on the contract's obligations.

In the U.S., where paid parental leave isn't federally mandated by law like in other countries (although it exists at the state level in some jurisdictions), time off for mothers and fathers is a popular company-offered benefit.

In four English-speaking countries, employee benefits may include: (this list isn't exhaustive for any of these areas and the order of items isn't significant)

What are Employee Benefits?

Employee Benefits are the indirect and non-cash compensation paid to an employee. These benefits are given to employees over their salaries and wages. These benefits are sometimes called fringe benefits and are intended to retain or attract employees.

Employees love benefits. They want appreciation and recognition for their hard work. Employees are attracted to companies based on their perks and other benefits.

Job satisfaction is directly tied up with employee satisfaction. Neglecting employee satisfaction can lead to decreased commitment. Thereby causing a lack of motivation, efficiency, and finally productivity.

Employees are a company's most valuable asset. Do you really believe this or do you just lip-service? You will invest in your employees' benefits if you truly believe it.

Legal Matters

Complications quickly arise as soon as business begins offering benefits, however. This is because important benefits like health insurance or retirement plans are subject to government scrutiny. Kathleen Meagher, an attorney specializing on benefits, says that it can be very difficult to set up a benefit plan correctly.

And don't think nobody will notice. An audit by the IRS will reveal to you that your activities are not in compliance with regulations. So can the U.S. Department of Labor, which has been beefing up its audit activities of late. Either way, a goof can be very expensive. Meagher states that retroactively you can lose all tax benefits and can be subject to penalties.

What is the biggest error? Leaving employees out of the plan. Examples range from exclusions of part-timers to failing to extend benefits to clerical and custodial staff. A rule of thumb is that if one employee gets a tax-advantaged benefit--meaning one paid for with pretax dollars--the same benefit must be extended to everyone. There are loopholes that may allow you to exclude some workers, but don't even think about trying this without expert advice.

These complexities make it a bad idea to do this alone. You can cut costs by doing preliminary research yourself, but before setting up any benefits plan, consult a lawyer or a benefits consultant. An upfront investment of perhaps $1,000 could save you far more money down the road by helping you sidestep expensive potholes.

Simplified Employee Pension (Sep) Plan

This is, as the name suggests, the most basic type of retirement plan. A SEP, which is essentially an IRA disguised as a simplified IRA, allows you to make a fixed amount of contributions each year. Paperwork is minimal, and you don't have to contribute every year. And regardless of the name, you don't need employees to set one up.

Employers are employees. Employees do not make any contributions to SEPS. The entire cost of SEPS must be paid by employers. Any contribution you make for yourself must also go to all eligible employees. Maximum contribution of 25% of employee's total compensation, up to $200,000 or $40,000 depending on the lesser.

Above And Beyond

What does COBRA mean to you? It's not a dangerous snake that will come back to bite you. Consolidated Omnibus Reconciliation Act, (COBRA), extends coverage for health insurance to dependents and employees beyond what is traditionally provided.

COBRA gives a terminated employee the option to continue coverage for as long as 18 months, even if he/she has been fired or quit. Employee's spouses can obtain COBRA coverage for up to 36 months after divorce or death of the employee, and children can receive up to 36 months of coverage when they reach the age at which they are no longer classified as dependents under the group health plan.

The good news: Giving COBRA benefits shouldn't cost you company a penny. Employers are permitted by law to charge recipients 102 percent of the cost of extending the benefits (the extra two percent covers administrative costs).

The federal COBRA plan applies to all companies with more than 20 employees. However, many states have similar laws that pertain to much smaller companies, so even if your company is exempt for federal insurance laws, you may still have to extend benefits under certain circumstances. Contact the U.S. Department of Labor to determine whether your company must offer COBRA or similar benefits, and the rules for doing so.

Actuarial Issues

ACTUARIAL ASSUMSTIONS

Actuarial assumptions are reasonable predictions about variables such as interest rates, life expectancy, and expected salaries. These assumptions are useful in both calculating benefits expected to accrue in the future and estimating their cost. See examples under "present value" and "early retirement: actuarial reductions" for further discussion.

EXAMPLE - In setting premium rates for life insurance coverage, an insurer will collect data on millions of individuals, developing a chart that will predict how long the average individual of a particular age will live. These "life expectancy" data permit actuaries to calculate the amount of premiums that would be necessary to cover predicted insurance payout. The premium schedule will show you the coverage available at these prices.

EXAMPLE: When setting the premiums for long term disability insurance, the insurer considers the probability that the employees will sustain injuries. To make this determination, the insurer will consider factors such as past occurrences; type of industry (e.g., lion tamers will have a greater chance of on-the-job injury than file clerks); age of the individuals in the workforce; and area of the country.

LIFE EXPECTANCY

The "life expectancy" refers to the average expected age of death for a group consisting of people of the same age.

EXAMPLE: An actuary may be able to show that some people will only live for a short time after they retire at 65. Others will survive until the end of their lives. If the actuary determines that individuals retiring at 65 will live an average of 16 years, an insurer can project the average cost of providing retiree health insurance for that period of time.

PRESENT VALUE

Present value is the value today of one or more payments to be made in the future -- that is, the amount of cash an employer would need to invest today in order to make all of the promised future payments and end up with no money left. Present value takes into account the fact that the future payments will be made from both principal and interest.

EXAMPLE: An employer will pay a worker $5,600 in October 2001, and $5,300 the following October. An employer requests its actuary calculate how much money the company will have on hand for October 1, 2000 to allow it to pay $10,900 in three years. This is the current value of $10,000. The employer's actuary concluded that money today would earn income at 6% annually based on assumptions regarding interest rates. The employer needs to invest $10,000 today to ensure that $10,900 will be available in the future.

10/1/2000: Employer invests $10,000 at 6% per year.

10/1/2001 - The total investment is now $10,600 (10,000 principal and $600 interest).

10/1/2001: Employer pays Employee $5,600, leaving Employer with $5,000 invested.

10.01.2002: This investment has grown from $5,300 (5,000 principal and $300 interest) to $5.300.

10.01.2002: Employee is paid $5,300 by Employer, which leaves Employer with $0.

Individual Retirement Account (Ira)

An IRA is a tax-qualified retirement savings plan available to anyone who works and/or their spouse, whether the individual is an employee or a self-employed person. One of the biggest advantages of these plans is that the earnings on your IRA grow on a tax-deferred basis until you start withdrawing the funds. Whether your contribution to an IRA is deductible will depend on your income level and whether you're covered by another retirement plan at work.

A Roth IRA may also be an option. Contributions aren't tax-deductible. However, retirement withdrawals will be exempt from tax The maximum annual contribution individuals can put in either a Roth or a traditional IRA is $3,000 for 2004, assuming they meet the eligibility requirements.

Roth IRA contributions are only available to individuals whose adjusted gross income (AGI), is less than $95,000. Benefits will be phased out at $110,000. The AGI for married couples filing jointly must not exceed $150,000 For joint filers, the contribution amount will be reduced by 30% (35%) if you are 50 years old or younger. For 2005 to 2007, the contribution limit for both single and joint filers climbs to $4,000 per person and to $5,000 per person in 2008. The inflation index will be applied to contributions after that.

You can be eligible for a deductible IRA regardless of your income, provided you don't participate in any employer-sponsored retirement plans, like a 401(k). If you are in an employer plan, you can qualify for a deductible IRA if you meet the income requirements. It is possible to make annual or yearly contributions to an IRA at any time, up until the due date of your federal income tax returns for that year. Extensions are not allowed. Contribution amounts for deductible IRAs are the same for Roth IRAs.

For joint filers, even if one spouse is covered by a retirement plan, the spouse who is not covered by a plan may make a deductible IRA contribution if the couple's adjusted gross income is $150,000 or less. The amount that you are allowed to deduct from an IRA is reduced in stages over the income threshold. It is completely eliminated for married couples earning more than 160,000. If the spouses are not working, they can each contribute $6,000 ($3,000) to IRAs. You can contribute $500 more for every spouse over 50 if there's enough earned income. For example, two spouses over 50 could contribute a total of $7,000 if there is at least $7,000 of earned income.

Health Insurance Benefits

You can ask your financial department and your doctor for guidance on how much you need to cover the premium. Sometimes, they will require that you pay a percentage (usually at least 50%) of employer subsidization. Remember that if your employer has more than 49 employees, you must follow the ACA's "affordability” provision to limit the premium you charge.

For a rough benchmark, the Kaiser Family Foundation reported in their 2016 Employer Health Benefits Survey that employers covered an average of 82 percent of premium costs (for individual coverage). Depending on your quoted price, this number may give your CFO some sticker shock, so remember that this isn't a required ratio. You can choose to contribute whatever is affordable and appropriate for your business (so long as you don't run afoul of your carrier obligations and ACA regulations).

If this sounds complicated, your broker can help you sort it out. A great broker will help you benchmark your health coverage, not only against your competitors, but also across similar sized companies in your area competing for the same talent pool. It is important to find a plan for company benefits that will help you stay competitive while complying with all new regulations.

Koegh Plan

The Employee Retirement Income Security Act of 1974, (ERISA), governs how 401(k), plans are managed and set up. There are many responsibilities that go with setting up a 401(k) program. For instance, you or someone you select has to determine the investment options employees will get to choose from. The performance of your investment and the services provided by the person administering it must be monitored. ERISA is there to ensure that fees are reasonable. Setting up a 401(k) is a complicated procedure governed by many arcane rules. You should never do it without consulting with a qualified tax advisor.

6 Different Types Of Employee Benefits And Incentives

Some types of employee benefits may be expected in your industry or even required by law. Others are benefit types you can use to differentiate yourself and attract higher-quality candidates.

The various kinds of employee benefits packages fall into six main categories:

• Benefits that are required by law
• Medical insurance
• Life insurance
• Retirement plans
• Disability insurance
• Fringe benefits

Let's list the different types of employee benefits and discuss each in detail.

Health Insurance

UND pays the full premium for single or family coverage.

1st day of the month following month of employment

This increases retention

Employer retention is the ability to keep his employees. And one of the best and easiest way to retain your best employees is providing them the best benefits.

51% of employees are planning to leave their jobs.

In order to stay at a company, employees need to be happy. And providing them the right benefits will surely make them feel valued and want to remain at the company.

Vantage Circle keeps these aspects in mind when helping companies offer the most effective employee benefits. Check the video to know more.

Remote Working

The best way to close the deal is via remote working. Flexible hours are a key characteristic of millennials. They love working at places where they don't have to be constantly and physically present to do their job. Nearly 92% of millennials want to be able to work remotely, even for a few hours a week.

Does The Cost Of The Benefit Increase With Age?

Yes. Yes. Because the life expectancy declines as we age, there is a greater chance that you will claim the benefit during the period of the premium.

Retirement Benefits

Retirement benefits are funds set aside to provide people with an income or pension when they end their careers. You can call Chamber of Commerce Group Insurance Plan at 1-800-665-3365. Retirement plans fit into two general categories:

• Defined benefit plans, also known as pension plans, are predetermined benefit amounts based on years of service and salary. In these plans, the employer bears the risk of the investment.
• In defined contribution plans (such as a 401k plan), employer or employee contributions are specified, but the benefit amount is usually tied to investment returns, which are not guaranteed.

These are just a few of the many unconventional employee benefits that you can take advantage of:

• Office pet-friendly
• Free food and beverages
• Tickets for movie, concert, and match
• Free library membership
• Volunteer time paid
• Clubs - Photography, board games, and music clubs

Chehalem Aquatic Center Pool Is Open To George Fox Employees

All George Fox employees are eligible to use the Chehalem Recreation District Aquatic Center pools for free.

To get your pool access, use your active George Fox faculty, admin or staff ID card to register and get a Chehalem Parks ID card. This free benefit is not available to employees, however you can purchase individual passes and lessons for your family.

Check out the pool website for additional information, such as schedules.

Disability Insurance

This is another type of employee benefit that contributes toward an employee's overall well-being.

• New York
• New Jersey
• Rhode Island
• California
• Hawaii

Lowers Absenteeism

Health issues, poor workplace morale, stress levels, child care issues and disengagement are some of the major causes of absenteism. Employees who are absenteeism suffer from demotivation, apathy and a delayed response to deadlines that can lead to lower productivity.

43% of employees agree that having benefits helps them take lesser leaves.

Employees are less likely to take leaves for their health issues if your company can offer them medical insurance. Similarly for tuition classes, family issues, parenting problems and other issues faced by employees.