Family Centered/ Dependent Care Benefits

1. Family Centered/ Dependent Care Benefits By Group 8: Hang Pham, Hongying Tso, Zang Her, and Colleen Washington

2. Family-Centered Benefits • Program designed to improve the quality of life and helping employees balance their work and family lives. www.brainybetty.com

3. Family-Centered Benefits • U.S. Department of Health and Human Services • 293 million people total population • 17% children under 18 living with both parents • 6% children under 18 living with single parent • 12% elderly population • 33 million people total population of California • 51.8% children under 18 living with working parents www.brainybetty.com

4. Overview-Family Centered Benefits • Adoption Benefits • Education Benefits • Flexible Work Benefits • Family Leave Benefits • Dependent Care Benefits • Elder Care • Child Care www.brainybetty.com

5. Family Centered-Benefits Table • Refer to Appendix A. (Table A-3) http://www.shrm.org/hrresources/surveys_published/2002%20Benefits%20Survey.pdf www.brainybetty.com

6. Adoption Benefits Plans • An adoption benefits plan is a company-sponsored program that financially assists or reimburses employees for expenses related to the adoption of a child and/or provides for paid or unpaid leave for the adoptive parent employee. www.brainybetty.com

7. Adoption Benefits Plans • Reasons for Company to Offer Adoption Benefits • Equity • Low Cost • Good Will • Social Benefit • Acceptance By Companies www.brainybetty.com

8. Adoption Benefits Plans • Covered Expenses • Reimbursement for specific expenses; • Specific "set" allowance, regardless of expense; or • Reimbursement or coverage through the company's medical plan for medical expenses only www.brainybetty.com

9. Adoption Benefits Plans • Mandated States: • Connecticut • District of Columbia • Maine • Massachusetts (female employees only) • New Jersey • Oregon • Rhode Island • Washington • Wisconsin www.brainybetty.com

10. Adoption Benefits Plans • Types of Adoption Leave • Paid Leave: authorized time off, discretionary time, annual or paid personal leave, annual or all-purpose time • Unpaid Leave: personal leave, child care leave, personal hardship leave, or medical leave www.brainybetty.com

11. Adoption Benefits Plans • Typical Company Plans Source: National Adoption Center www.brainybetty.com

12. Education Benefits • Education Family Benefit • Education benefits are offer by their employer to give their employees more education or training and the employees’ family members’ opportunity to receive more or better education. From the Society for Human Resource Management (SHRM) survey in 2002, 20% of 551 companies offer scholarships for members of employee’s family, 8% for college/school selection/referral, and 5% offers financial aid for members of employee’s family www.brainybetty.com

13. Education Benefits • Types of education benefits • Scholarship • Educational Loan Plan • Education reimbursement/ Tuition Assistance Program www.brainybetty.com

14. Education Benefits • Scholarship • Under the scholarship employee benefit, companies will allow some part-time and all full-time workers and their families to apply for scholarships, but every company has their own qualifications. • Raley’s- Joyce Raley Teel Scholarship • Allstate-Allstate Foundation Scholarship Program www.brainybetty.com

15. Education Benefits • Educational Loan Plan • For this plan companies usually will provide loans to eligible employees to help with the cost of providing an undergraduate or graduate college education for eligible dependent children. • Intel • MIT www.brainybetty.com

16. Education Benefits • Education reimbursement/ Tuition Assistance Program • United Technologies Corporation (UTC) • This company is a motivating force behind the company’s innovative Employee Scholarship Program, which pays 100% of tuition, books and fees for UTC employees to pursue any degree they like even if it’s work-related or not at any accredited institution of higher learning. www.brainybetty.com

17. Flexible Work Benefits • Flexible Work Options • Alternate arrangements from traditional working day and week. • Employees may choose a different work schedule to meet personal or family needs. • Can be formally written into company policy or informal agreement between employer and employee www.brainybetty.com

18. Flexible Work Benefits • Common Types of Flexible Work Options • Flextime • Reduced Hours / Part-Time • Compressed Work Week • Telework / Telecommuting • Job Sharing www.brainybetty.com

19. Flexible Work Benefits • Benefits for Employers • Benefits for Employees www.brainybetty.com

20. Family Leave Benefits • Family Leave Benefits • Family leave benefit allows employees to take time off from work due to illness, care of childbirth, adoption, care of a seriously ill family member and personal business. • Paid or Unpaid Leave www.brainybetty.com

21. Family Leave Benefits • Unpaid Family Leave • Family and Medical Leave Act (FMLA) • California Family Rights Act • California State Disability Insurance (CASDI) • New California Family Temporary Disability Insurance Benefit www.brainybetty.com

22. Family Leave Benefits • Paid Leave • Not required by law • Types of Paid Leave www.brainybetty.com

23. Family Leave Benefits • Advantage of Family Leave Benefits • Disadvantage of Family Leave Benefits www.brainybetty.com

24. International Maternity Leave Benefits Source: Australian Human Rights & Equal Opportunity Commission www.brainybetty.com

25. Dependent Care Benefits • Since World War II, more and more women has joined the work force increasing the need for dependent care. Dependent Care is for any child under the age of 13 or any adult that is related to the employee and is incapable of self care. • Elder Care • Child Care www.brainybetty.com

26. Elder Care Benefits • Reasons Company offers Elder Care Benefit • reduces tardiness and absenteeism • lower training and recruitment costs • increase productivity and performance • higher employee morale and commitment • greater employee attraction and retention www.brainybetty.com

27. Elder Care Benefits • Common Types of Elder Care Benefits • resource and referral programs • Local resource and referral agency http://www.pbs.org/workfamily/help_states.html • flexible spending accounts • flexible work schedules • dependent care tax credits in addition to or in lieu of childcare tax credits • health care and long-term care insurance for aging relatives • in-home care evaluations provided by licensed geriatric care managers • Ford Motor Co. • Offer seminars on elder care www.brainybetty.com

28. Elder Care Benefits • What an Employee Can Do • Be Real • Be Up Front • Be Ready • Don’t Be Afraid of the Employer’s Reaction www.brainybetty.com

29. Elder Care Benefits • What a Employer Can Do • Conduct a survey or focus group of employees • Provide information to employees through in-house communication vehicles • Talk with other employers in the area www.brainybetty.com

30. Child Care Benefits • Why Employer should offer child care benefits? • Absenteeism of employee will decrease the company’s performance and productivity. • According to the Families and Work Institute survey, the most common reasons for investing in family benefits are: • To retain employees at all levels of the workforce • To help employees balance work and family life • To improve employee morale. www.brainybetty.com

31. Child Care Benefits • Types of Child Care Benefits • Resource and referral services • The SHRM surveys shows that 20% of the 551 companies offer the child care referral services, making it the most offered child care benefit. • Back-up/sick child care • Some employer will have back-up child care centers or a third party operate one, if normal child care arrangement is messed up. www.brainybetty.com

32. Child Care Benefits • Off-Site Child Care • Disadvantages • Inconvenience of commuting to child care center. • No reassurance of the quality of child care the children are receiving. • Advantages • Choice of choosing child care center. • Companies with flexible scheduling, telecommuting, and mobile workers • Space Issues • By Supporting local off-site child care centers, companies will help build the overall community economy www.brainybetty.com

33. Child Care Benefits • On-Site Child Care • Disadvantages • Risk and liability issues, especially dealing with children. • Advantages • Convenient for parents • Increase productivity, due to parents having to miss work for children emergences • Attract quality employees and increase retention • Able to visit children on breaks and lunches • Employee loyalty www.brainybetty.com

34. Child Care Benefits • Taxation • The economic Recovery Tax Act of 1981 (ERTA) provided tax incentives for employer-sponsored child and dependent care benefits • IRC 129 • IRC 125 www.brainybetty.com

35. Child Care Benefits • Internal Revenue Code Section 129 • What is the section 129 Credit for dependent care assistance and referral services? • How does the Dependent Care credit work? • What are the exclusions? www.brainybetty.com

36. Child Care Benefits • Internal Revenue Code Section 125 • What is it and how does it affect employees? • The Dependent Care Flexible Spending Account under IRC Section 125 allows the employee to avoid both FICA (7.65%) and Federal Income Tax (15%, 28%, 31%) on qualifying child and dependent care expenses. www.brainybetty.com

37. Child Care Benefits • Dependents • Spouse/student • Expenses • Payments • Provider • Filing Status www.brainybetty.com

38. Child Care Benefits www.brainybetty.com

39. Child Care Benefits • Which dependents are eligible? • Dependents under age 13 whom the employee can claim as a dependent for income tax purposes. • The employee’s spouse who is physically or mentally unable to care for himself/herself. • A dependent who is physically or mentally unable to care for himself/herself, and for whom the employee can claim as an exemption for income tax purposes www.brainybetty.com

40. Child Care Benefits • How much can an employee withhold and how do they get reimbursed? • Single employee • Married employee • Reimbursement www.brainybetty.com

41. Child Care Benefits • What are the eligible Dependent Day Care expenses? • Day care provided by babysitter • Day care provided by day care center • The cost of day care provided at a summer camp • The cost of day care provided at a private school • Fees to secure dependent's place in a day care center • Any other expenses that would be considered eligible for a dependent care credit for federal income tax purposes www.brainybetty.com

42. Child Care Benefits • Day care cannot be provided by: • The employee’s spouse • The other parent • The employee’s child who is under age 19 at the end of the benefit plan year • A person whom the employee can claim on their taxes www.brainybetty.com

43. Benefit Wheel • Internal Analysis • Business Objective • TCS • HRM • Cost Issues • Wants VS Needs • External Analysis • Taxation • Benefit Innovations • Competition • Legal Requirements • Inflation www.brainybetty.com

44. Family Centered Benefit Websites • Adoption Benefit:: http://benefits.adoption.com/ • Dependent Care Flexible Spending Account: http://www.probenefits.com/A-Flex/Partic/DepFSA.htm#WhatCredit • Dependent Care Referral: http://www.pbs.org/workfamily/help_states.html • Family and Medical Leave Act: http://www.dol.gov/esa/whd/fmla/ • Flexible Work Options: http://www.ccohs.ca/oshanswers/psychosocial/flexible.html • International Child Benefits: www.childpolicyintl.org • Investing in Child Care: http://www.treas.gov/press/releases/docs/chdcare.pdf • National Child Care Information Center:http://www.nccic.org/faqs/taxcreditsemployers.html • Society for Human Resource Management http://www.shrm.org/hrresources/surveys_published/2002%20Benefits%20Survey.pdf www.brainybetty.com

45. Family Centered Benefit Questions ? www.brainybetty.com