HR management: Employee benefits

What is considered a contribution plan?

- 401(k)

What are the different types of retirement plans?

- Employee retirement income security (ERISA) - pensions -Defined contribution plans (IRA and 401(k)) - insurance - paid time off - paid time off (PTO) bank - employee services

What makes an employee eligible for unpaid leave?

- birth or adoption of a child. - care for a sick parent, child, or spouse. - take care of health problems that interfere with job performance.

What type of health insurance is described?

- employees typically must first pay deductible - a monthly group rate, called a premium, is paid by the employer and employee.

What is considered voluntary benefits?

- health insurance - retirement - Insurance (other besides health like life) - paid time off - Employee services

Insurance

- life insurance - long-term disability insurance

employee services

- personal services: - Employee assistance programs (EAP) -Family-friendly work life benefits - transportation subsidies - education subsidies - flexible work arrangements

What does ERSA require employers/ planners to do?

- requires retirement plan administrator act prudently in making investments with participating funds. - requires employers to pay for plan termination insurance, which pays out if retirement plan terminates or goes broke.

paid time off

- sick leave - vacations - holidays - other: jury duty, funerals, time off to vote, military duty

Regarding COBRA, what is considered a qualifying event?

- termination of employment for any reason other than gross misconduct - reduction in hours - employee disability at time of reduction in hours or termination - divorce or death of employed spouse. - dependent child loses eligibility status

Types of health insurance

- traditional health insurance plan - Health maintenance organization (HMO) - Preferred provider organization (PPO) - Health savings account (HSA)

Paid time off (PTO) bank

1. most flexible approach 2. employees to use as the need arises.

How are rates employers paid determined by?

1. risk of injury for an occupation - the higher the risk, the more the comp. 2. frequency and severity of injuries sustained by a company's workforce. 3. level of benefits provided for specific injuries sustained by a company's workforce. North Dakota: lowest at providing compensation California: highest for providing workers comp.

employee services Family-friendly (work-life) benefits

1. subsidized child care 2. elder care

When was the Unpaid leave act expanded?

2008

What is the minimum age a person has to be to participate in a retirement program?

21

Deductible

Amount that insurance will pay AFTER you pay off the required amount for the deductible to kick in. In health insurance are typically per year deductible payment.

vacations

Average is 10 days in US Canada and Japan; 30 in Germany and most of Europe 6 in Mexico

What is the magic that a Roth IRA gives people?

Compounding interest.

What is unemployment insurance funded by?

Funded by tax paid employers on all employee's earnings.

How is social security funded?

Funded through payroll tax paid in equal amounts by employers and employee.

A voluntary benefit means what?

It's a benefit that employers DON'T have to provide to employees.

Health insurance portability and accountability act (HIPAA)

Protects and employee's ability to transfer between health insurance plans without a gap in coverage due to a preexisting condition.

Unpaid level- family medical leave Act (1993)

Requires employers with 50+ employees to provide up to 12 weeks unpaid leave to eligible employees.

True or false? Workers compensation is administered by states and not federal government?

True

True or false: the US is the only developed country that doesn't provide for some type of leave for paternity or maternity leave?

True.

Holidays

US average 10 paid holidays per year

What is vesting

a guarantee that accrued retirement benefits will be given to retirement plan participants when they retire or leave the employer.

Health savings account (HSA)

a health plan with a high deductible that lets individuals save money for health care expenses with pretax dollars and lets unspent money accumulate as a tax-free stash of money.

Preferred provider organization

a network of doctors and hospitals that provide a broad set of medical services for a flat fee per participant.

Individual retirement account (IRA)

allows employee to contribute up to $5,000 per year tax free.

Traditional health insurance plan

develop a fee schedule based on the cost of medical services in a specific community.

401(k) plan

employer matches 25%-100% of employee contribution up to 6% of employee's salary - this is pre-taxed, by employer maxing it means that whatever you put in an employer will give you whatever % they said they would.

defined contribution plan

employer promises to contribute a specific amount of funds into the plan for each participant.

Consolidated omnibus budget reconciliation act (COBRA) of 1985

gives employees or their dependents the right to continue their health insurance coverage (at their own cost) for 18-36 months following a qualifying event.

Patient and affordable care act (PACA)

guarantees adorable health care is available to people in the US. - requires that, starting in 2015, all employers with over 50 employees provide health insurance to their full-time employees or pay a $2000 tax penalty per employee.

preexisting condition

medical condition treated under an employee's former health plan and requires treatment under a new employer's different health plan.

employee services Personal services (onsite)

onsite cafeteria 2. banking services 3. onsite laundry, dry cleaning, hair-dressing 4. wellness facilities 5. pet insurance

life insurance

pay a benefit to the survirors of a decreased employee

Pension

promises to pay a fixed dollar amount of retirement income based on a formula that takes into account the average of the employee's las 3-5 years earning prior to retirement.

Employee retirement income security (ERSA)

protects employees retirement benefit from mismanagement.

What was the unpaid leave act expansion that took place in 2008?

provided additional leave for employees with family members who are covered members of the military

Health maintenance organization (HMO)

provides comprehensive medical services for employees and their families at an annual flat fee.

sick leave

provides full pay for each day that an employee experiences a short-term illness or disability that interferes with his/her ability to perform the job

Health insurance

provides health care coverage for employees and their dependents.

Social security

provides income for retirees, disabled, and survivors of decreased workers and funds medicare (health insurance for those over 65)

Workers compensation

provides medical care, income continuation, and rehabilitation expenses for people who sustain job-related injuries or sickness. - workers compensation is typically pretty low so there are supplementary services like aflact to help.

long-term disability insurance

provides replacement income to disable employees who cannot perform their major job duties.

Unemployment insurance

provides temporary income for people during periods of unemployment.

Premium

standard payment that is needed to be paid monthly.

What are employees on unpaid leave entitled to?

they are entitled to receive the same healthcare benefits and are guaranteed the same or comparable job when they return to work.