Compensation; The Benefit Determination Process (Chapter 12)
Cafeteria-Style Plan
A benefit plan that looks like a defined contribution plan. Employees have a hypothetical account, such as a 401(k), into which is deposited what is typically a percentage of annual compensation
Health Savings Accounts
A fund is created by the employer, employee, or jointly that is used to pay the first x dollars of health care expenses
Flexible Benefit Plan
Benefit package in which employees are given a core of critical benefits and permitted to expend the remainder of their benefit allotment on option they find most attractive
E-benefits
Employee benefits, information to applications, posted on company intranet by employer, which allows employee access 24/7 and employer to update easily
Tiered Networks
Employer offers employees a choice of medical plans, which include medical systems of varying costs
Menu Driven Health Care
Employer provide online information to help employees customize their own benefit plan by selecting co-pays, deductibles, and so forth
Managed Competition Health Plan
Employer provides a subsidized basic medical plan with buy-up options plan can be from same or multiple insurers
Employee Retirement Income Security Act (ERISA)
For employees who chose to have a retirement plan, this act sets some formidable rules that must be followed to be in compliance
Wage and Price Controls
Government regulations that aim at maintaining low inflation and low levels of unemployment.
Social Security
Mandated by State or Federal Government
Unemployment Insurance
Mandated by State or Federal Government
Workers Compensation
Mandated by State or Federal Government
Customer Driven Health Care
Medical care package where the employer finances the cost up to a dollar maximum and the employee search for options that best fit their specific needs
Market based Health Care
Medical care package where the employer finances the cost up to a dollar maximum and the employee search for options that best fit their specific needs
401(K) Pension Plan
Named for the section of the Internal Revenue Code describing the requirements, is a saving plan in which employees are allowed to defer pretax income
Direct Compensation
Pay received directly in the form of cash
Employee Benefits
The parts of the total compensation package, other than pay for time worked, provided to employees in whole or in part employer payments