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