Employee benefits and (especially in English English) benefits in form (also called benefits , perquisites , or < b> perks ) covers various types of non-wage compensation provided to employees other than their normal wage or salary. In the example where the employee exchange (cash) wages for some other form of allowance is usually referred to as 'payroll' or 'salary exchange' arrangement. In most countries, most employee benefits are taxed at least up to a few degrees. Examples of these benefits include: housing (provided by employers or employers) equipped or not, with or without free facilities; group insurance (health, dental, life, etc.); protection of income of persons with disabilities; Retirement benefits; daycare; reimbursement of school fees; sick leave; holidays (paid and unpaid); social security; profit sharing; contributions of student employer loans; briefing; housemaid (helper); and other special benefits.
The purpose of employee benefits is to improve the economic security of staff members, and thereby, increase the retention of workers throughout the organization. Thus, this is one component of gift management.
Everyday language, "facility" is the benefit of a wiser nature. Often, benefits are given to employees who perform very well or have seniority. Public facilities are take-away vehicles, hotel stays, free drinks, recreational activities at work (golf, etc.), stationery, lunch money, and - when there are many choices - options for things like job assignment and holiday scheduling. They can also be given the first chance of a job promotion when there is a job.
Video Employee benefits
Managerial perspective
The Bureau of Labor Statistics, such as the International Accounting Standards Board, defines employee benefits as a form of indirect spending. Managers tend to see compensation and benefits in terms of their ability to attract and retain employees, as well as in their ability to motivate them.
Employees - along with potential employees - tend to see the mandated benefits of different rules of free benefits, that is, not mandated but only designed to make compensation packages more attractive. The mandated benefits are regarded as creating the rights or rights of employees, while the discretionary benefits are intended to inspire employee loyalty and improve job satisfaction. Based on this, Klonoski proposes the definition of both free and non-free benefits as would be seen by a manager: "The irresponsible employee benefit is an organization's programs and practices that are not mandated by regulation or market forces, and that improves employee performance by increasing employment, organizational satisfaction or loyalty Non-discretionary employee benefits are organizational programs and practices mandated by regulatory or market forces, and which create employee rights, rights, or expectations. "
Viewed from this perspective, things like casual dress code, free time, and telecommuting can be considered "benefits" of employees whether they are generating a fee for the organizations that offer them. If employees prefer to dress casually or have flexible working hours or work from home, they may tend to seek out and are less likely to leave the company offering these things.
Maps Employee benefits
Canada
Employee benefits in Canada usually refer to the employer's life, disability, health and dental plans. Such group insurance plans are top-up for the province's existing coverage. An employer provides group insurance plans coordinated with provincial plans in each province or region, therefore an employee covered by the plan should be covered by the provincial plan first. Components of lifelong deaths, accidents and disunity and disability insurance are employee benefits only. Some plans provide minimal dependent life insurance benefits as well. Health care plans may include the following: improvement of hospital rooms (Semi-Private or Private), medical services and equipment, medical travel (60 or 90 days per trip), registered therapists and practitioners (eg Physiotherapists, acupuncturists , chiropractors, etc.), prescriptions requiring medication, vision (eye examination, contact/lens), and Employee Assistance Program. Dental plans usually include Basic Teeth (cleaning, filling, root canal), Main Teeth (crown, bridge, dentures) or Orthodontic (braces).
In addition to the employer-sponsored healthcare benefits described above, the next most common employee benefits are group savings plans (Group RRSP and Profit Sharing Plan Group), which have tax advantages and growth for individual savings plans.
United States
Employee benefits in the United States include relocation assistance; medical plans, prescriptions, vision and teeth; flexible expense account of health and dependent care; pension benefit plan (pension, 401 (k), 403 (b)); long term life insurance plans and long term insurance; legal aid plan; second medical opinion program, adoption assistance; child care benefits and transportation allowances; Left paid time (PTO) in the form of vacation and ill payment. Benefits can also include formal or informal employee discount programs that give workers access to special offers from local and regional vendors (such as movies and park tickets, fitness programs, discount shopping, hotels and resorts, etc.).
Companies that offer this type of work-life allowance seek to increase employee satisfaction, corporate loyalty and retention by delivering valuable benefits that go beyond basic salary. Benefits are also considered as a cost to retain employees other than basic salaries. The term "fringe benefits" was created by the War Workers' Council during World War II to illustrate the indirect benefits that the industry has created to attract and retain labor when direct wage increases are prohibited.
Some additional allowances (for example, accident and health plans, and long term life insurance coverage up to US $ 50,000) may be exempt from gross income of employees and, therefore, are not subject to federal income tax in the United States. Some serve as tax shelters (for example, flexible expenses, 401 (k), or 403 (b) accounts). This rate of benefits often changes from year to year and is usually calculated using a fixed percentage that varies depending on the employee classification.
Typically, the employer's allowance is a tax deduction for employers and is not taxable to employees. Exceptions to general rules include certain executive benefits (eg golden handshakes and golden parachute plans) or that exceed the federal or state tax exemption standard.
American companies can also offer cafeteria plans to their employees. This package offers a menu and level of benefits for employees to choose from. In many cases, the plan is funded by the employee and by the employer (s). Parts paid by employees are deducted from their gross salaries before federal and state taxes are applied. Some of the benefits will still be taxed by the Federal Contributions Act (FICA), such as 401 (k) and 403 (b) contributions; however, health premiums, some life premiums, and contributions to flexible expense accounts are excluded from FICA.
If certain conditions are met, employers who provide food and lodging may be exempted from employee gross income. If the food is provided (1) by the employer; (2) for the employer's convenience; and (3) provided in the business premises of their employer may be exempt from the gross income of employees per section 119 (a). In addition, the lodging provided by the employer for convenience on the premises of the employer's business (which the employee requests to accept as a condition of employment) is also exempt from gross income. Importantly, section 119 (a) applies only to food or lodging furnished "in kind." Therefore, cash allowances for food or accommodation received by an employee are included in the gross income.
Employee benefits provided through the ERISA (Employee Pension Income Law) are not subject to state-level insurance regulations such as most insurance contracts, but employee benefits products provided through insurance contracts are arranged at the state level. However, ERISA generally does not apply to plans by government entities, churches to their employees, and some other situations.
Under the terms of Obamacare or the ACA on Shared Responsibility, certain employers, known as the prevailing big entrepreneurs, are required to offer the minimum coverage of affordable coverage to their full-time employees or to make the employer share responsibility payments to the IRS.
Private companies in the US have come up with some unusual earnings.
In the United States, the time paid off, in the form of a holiday or sick day, is not required by federal or state law. Despite the fact, many US businesses offer some form of paid leave. In the United States, 86% of workers in big businesses and 69% of employees in small businesses receive paid days.
United Kingdom
In the UK, employee benefits are categorized under three terms: flexible benefits and flexible benefit packages, voluntary benefits and core benefits.
"Core benefits" is a term given to benefits that all staff enjoy, such as pensions, life insurance, income protection, and holidays.
Flexible benefits, often called "flex schemes", are where employees are allowed to choose how the proportion of their wages is paid or they are given a benefit budget by their employer to spend. Currently about a third of UK employers operate such schemes. How flexible benefit schemes are organized remains consistent enough over the years, although the definition of flex has changed quite a lot since it first arrived in Britain in the 1980s. When the flex first appears, it is run as a formal scheme for a specified contract period, where employees can opt in and out of the company's paid benefits option, select paid employee benefits, or withdraw cash. In recent years more and more British companies have used national insurance taxes and savings earned through the implementation of salary sacrifices to fund the implementation of flexible benefits. In a salary sacrificial arrangement an employee entitles to a share of the cash rewards that are under their employment contract. Usually the sacrifice is made in return for the employer's consent to give them some form of non-cash benefit. The most popular types of salary sacrifices include child care and retirement vouchers.
A number of external consultants exist that allow organizations to manage Flex packages and they are centered around providing Intranet or Extranet web sites where employees can view their current flexible benefits status and make changes to their packages. The adoption of flexible benefits has grown rapidly, with 62% of entrepreneurs in the 2012 survey offering flexible benefits packages, and another 21% planning to do so in the future. This coincides with increasing employee access to the internet and studies showing that Employee Engagement can be driven by the success of their adoption.
"Voluntary Benefits" is the name given to the set of benefits employee chooses to be included and paid personally, though, as with flexible plans, many companies use salary sacrifices schemes in which the employee reduces their salary in exchange for the employer paying for the perk. This tends to include benefits such as government-backed (and hence efficient tax) cycles for work, pension contributions and child care vouchers as well as special discounts on retail and leisure vouchers, gym and discount membership at local stores and restaurants (providers including Xexec). They can be run at home or arranged by an external employee benefit consultant.
Fringe benefit tax
In some countries (eg, Australia, New Zealand, and Pakistan), 'additional allowance' is subject to the FBT, which applies to most, but not all, additional benefits. In India, tax allowance taxes were abolished in 2009.
In the United States, the company's sponsored health insurance is considered a taxable income until 1954.
Disadvantages
In the UK, allowances are often taxed at an individual's normal tax rate, which can prove costly if there is no financial benefit to the individual's benefits.
The UK system of state pension provision depends on the payment of the National Insurance Contribution. Salary exchange schemes result in reduced payments and so can also reduce state benefits, especially the Second State Pension.
See also
- Incident benefits
- Novated lease
- Earnings in the form
References
Source of the article : Wikipedia
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