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Chapter #13

Chapter #13. Benefits and Services. Oklahoma 1907 - 2007. www.netstate.com/state_seals.htm. Benefits. Indirect financial and non financial payments employees receive for continuing their employment with the company. 28% of payroll $ $888.00 per family monthly 7.00 per payroll hour.

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Chapter #13

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  1. Chapter #13 Benefits and Services

  2. Oklahoma 1907 - 2007 • www.netstate.com/state_seals.htm

  3. Benefits • Indirect financial and non financial payments employees receive for continuing their employment with the company. • 28% of payroll • $ $888.00 per family monthly • 7.00 per payroll hour

  4. Legally Required Workers Comp Unemployment FMLA SSI Optional 401K Health, Dental Sick Vaction Retirement Life insurance Childcare Profit sharing Pensions

  5. Classifications of Benefits • 1. Pay for time not worked • 2. Insurance benefits • 3. Retirement • 4. Services

  6. Pay for time not worked Look page #481 • Supplemental benefits • Most costly • Paid time off 30% of total benefits • Holidays • Vacations • Jury duty • Funeral leave • Military leave • Personal days • Sick days • Sabbatical leaves • Maternity leave • unemployment

  7. Know Your Law • ERISA • Requires ers to have plans in writing • Job Creation and Workers Assistance Act • ROIs, ers must use in pension funds • Newborn Mothers Protection Act • Minimum stays in hospitals • Mental Health Parity Act • Insurance companies can not set limits • HIPAA • FMLA • ADA

  8. HIPAA • Protection of health information

  9. Survey of benefits • 89% received paid holidays • 96% paid vacations • 77% medical coverage • 80% retirement • 87% life insurance

  10. Sick Leave • provides pay to employees when they are out of work due to illness • Usually full pay for # of days • up to 12 per year • 45 % of actually sick days are actually for the sick • Family issues 27% • Personal needs 13% • Mental problems 9% • Stress 6% • Other reasons

  11. Unemployment 26 weeks • If a person is unable to work through some fault other than his or her own. • Derived from tax .1% to 5% of payroll • Depends on rate of terminations • Release through no fault of ee

  12. Vacations and Holidays • US average 10 days per year • Mexico 6 days • Sweden 25 days • France 25 days

  13. Sick leave cont. • Very expensive • Solutions • Leave banks PTO • Well pay

  14. Family Medical Leave Act FMLA Bill Clinton • Parental Leave (1250 hours to qualify) • (1/2 of all worker today are women and 80% will become pregnant during their work lives) • Private ers of 50 or more • 12 weeks unpaid leave • Ers can require ees to take unused paid sick leave or annual leave as part of the 12 weeks • EE are entitles to insurance • EE guaranteed return to previous status with no loss of benefits

  15. Severance Pay • A one time payment some employers provide when terminating an employee. • Humanitairan • Since ers require a two week notice from ees • To avoid litigation • 82% firms have it • Either salary or lump sum • Depends on length of employment I wek for each pay year unless you are an exec and its 39 average

  16. Supplemental unemployment • For temporary shutdowns • GM for remachining • Supplements unemploymenet

  17. Workers Comp • Pay for work related injury • Pay for death to survivors • Paid by % of injury • Temporary – partial or total • Permanent – partial or total • Costs depend on type of industry and probable danger • Increases with # of claims • High costs to business that add no value

  18. Hospitalization, Health and Disability Insurance • HMO • A prepaid health care system that generally provides routine routine the clock medical services as well as preventive medicine in a clinic type arrangement for ees. Who pay a nominal fee in addition to the fixed annual fee the er pays • PPO • Groups of health care providers that contract with ers, insurance co. or third party payers to provide medical are at a reduced fee.

  19. Reducing Health CostsLook # 487 “Cost Savings” • Have a deductible • Increase amount of deductibles • Use gatekeepers • Encourage prevention Wellness programs • Form coalitions • Treat AIDS victims in the home

  20. Pregnancy Discrimination Act • Pregnant women can not be discriminated against. Ers have to give same benefits as anyone else. weeks

  21. COBRA • Private employers must continue to make health benefits available to terminated or retired ees for 18 months • Ee must pay at same rate. • Use acknowledgement form to show that ees have been told COBRA rights • Look # 490 Recordkeeping

  22. SSI • Paid on EE wages • Shared equally between ee and er • 7.65% of gross salary up to 80,400$ • Self employed pay 15.3% • 67Yr to get it if born after 1960

  23. Social Security • Federal program that provides three types of benefits • $ age 62 • Survivors • Dependents • Disability • EE has to be insured to get them • Medicare is also administered through SSI • 7.65% of f irst $87,900

  24. ERISA Pension funds are to be protected and insured (Pres Ford 1974) • Vesting after 5 years service funds cannot be forfeited by ee. Contributions are always there plus ers contribution • Pension Benefits Guarantee CORP • Insurance pension plans against bankruptsy • Portability

  25. Pensions Plans • Defined Benefits • Ee knows exactly how much • Contribution Plans • 401K pretax deduction • New law increased to 15,000 yr 2006 • Deferred Profit sharing • ESOP • Golden offerings • Early retirement benefits • Be careful of discrimination

  26. Personal Services and Family Benefits • Credit Unions • EAPS • Childcare • Subsidized health care • Compressed work weeks

  27. Benefits cont. • Job sharing • Eldercare • Telecommuting • Education tuition reimbursements • Transportation to work

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