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BenefitsandServices
Afterstudyingthischapter,
youshouldbeableto:Nameanddefineeachofthemainpayfortimenotworkedbenefits.Describeeachofthemaininsurancebenefits.Discussthemainretirementbenefits.Outlinethemainemployees’servicesbenefits.Explainthemainflexiblebenefitprograms.?2005PrenticeHallInc.Allrightsreserved.13–2
?2005PrenticeHallInc.Allrightsreserved.13–3BenefitsBenefitsIndirectfinancialandnonfinancialpaymentsemployeesreceiveforcontinuingtheiremploymentwiththecompany.TypesofemployeebenefitplansSupplementalpay:sickleaveandvacationpayInsurance:workers’compensationRetirement:PensionsEmployeeservices:child-carefacilities
?2005PrenticeHallInc.Allrightsreserved.13–4TheBenefitsPictureTodayMostfull-timeemployeesintheUnitedStatesreceivebenefits.Virtuallyallemployers—99%—offersomehealthinsurancecoverage.Benefitsareamajorexpense(aboutone-thirdofwagesandsalaries)foremployers.Employeesdoseemtounderstandthevalueofhealthbenefits.
?2005PrenticeHallInc.Allrightsreserved.13–5AnnualHealthCareCostIncreasesFigure13–1Source:EricParmenter,“ControllingHealth-CareCosts,”
CompensationandBenefitsReview,September/October2002,p.44
?2005PrenticeHallInc.Allrightsreserved.13–6Private-SectorEmployer
CompensationCosts,June2003Figure13–2Source:“TotalEmployerCostsRoseto22.61inSecondQuarter,”
BNABulletintoManagement,September11,2003,p.293
?2005PrenticeHallInc.Allrightsreserved.13–7LawsAffectingEmployeeBenefitsRetirementplansEmployeeRetirementeSecurityActof1975(ERISA)EconomicGrowthandTaxReliefConciliationActof2000JobCreationandWorkerAssistanceActHealthplansTheNewbornMother’sProtectionActof1996TheMentalHealthParityActof1996AgeDiscriminationinEmploymentActHealthInsurancePortabilityandAccountabilityActof1996(HIPAA)FamilyandMedicalLeaveAct(FMLA)AmericanswithDis
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