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Understanding Employee Benefits

Employee benefits are meant to help increase the economic and social security of employees. These benefits are non-wage compensation for existing salaries These plans can also include things like dental, retirement, relocation assistance and child care benefits. There are even miscellaneous benefits that include things like health and fitness, wellness, discounts and savings on hotels and resorts.

It is important that employers create a plan that benefits the employees and not just themselves. A bad plan is bad for employees and can lead to them being unhappy and gives them a reason to find another job. As an employer it is important to sit down with employees and a human resource representative. This can help in the formation of a plan that works for everyone. They can determine the type of employee and the type of benefit that works best. Every company is different and every company has a different demographic of employees.

Some employee benefits like accident and health plans may be exempt fro federal taxes. This is an added benefit because it's cheaper for the employee. Some companies offer what they call cafeteria plans where the employee can choose from a menu of benefits. These plans are often funded by both the employer and employee. Make sure the employee getting the most for the money. It is an important aspect of the employee/employer relationship.

These plans all must comply with laws and regulations by the local and state governments. There are laws like the Employee Retirement Income Security Act which governs retirement plans. Visit www.uslegalservices.net for more. This law encourages employers to offer benefit plans to minimize financial burdens. It acts to protect the interest of employees and gives tax incentives.

The group health plans are subject to what is called the Consolidated Omnibus Budget Reconciliation Act. Which means the plans must provide notice of continuation rights to former employees. The employee must go here and decide whether or not to purchase continuation coverage with 60 days.

Some companies provide perks to employees who have done notably well or have seniority. These perks can include company cars, refreshments, lunch allowances and hotel stays. These perks can be a great motivator for people to do a better job or stay on board. Perks can get increasingly better the longer and employee stays with the company. The better the perk the longer an employee might want to stay with the company. There are often tiers for perks in the 5, 10, 15 and 25 year range. Each year the perks get better.