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Chapter 13: Employee Benefits - Coggle Diagram
Chapter 13: Employee Benefits
Reasons for Benefits Growth
Factors contributed to tremendous growth
Third, the tax treatment of benefits programs is often more favorable for employees than the tax treatment of wages and salaries, meaning that a dollar spent on benefits has the potential to generate more value for the employees than the same dollar spent on wages and salaries.
A fourth factor that has influenced benefits growth is the cost advantage that groups typically realize over individuals.
Second, wage and price controls instituted during World War II, combined with labor market shortages, forced employers to think of new ways to attract and retain employees.
A fifth factor influencing the growth of benefits was the growth of organized labor from the 1930s through the 1950s.
First, during the 1930s several laws were passed as part of Franklin Roosevelt’s New Deal, a legislative program aimed at buffering people from the devastating effects of the Great Depression.
Benefits Programs
RETIREMENT
Defined Contribution
Cash Balance Plans
Defined Benefit
Funding, Communication, and Vesting Requirements
PAY FOR TIME NOT WORKED
PRIVATE GROUP INSURANCE
Medical Insurance
Disability Insurance
FAMILY-FRIENDLY POLICIES
Child Care
SOCIAL INSURANCE (LEGALLY REQUIRED)
Unemployment Insurance
Workers’ Compensation
Social Security
Managing Benefits: Employer Objectives and Strategies
COST CONTROL
Health Care: Controlling Costs and Improving Quality ( Health Maintenance Organization (HMO), Preferred Provider Organization (PPO)
Staffing Responses to Control Benefits Cost Growth
NATURE OF THE WORKFORCE
SURVEYS AND BENCHMARKING
COMMUNICATING WITH EMPLOYEES AND MAXIMIZING BENEFITS VALUE
Flexible Benefits Plans
Flexible Spending Accounts
Employees Typically Underestimate the Value of their Benefits
G
eneral Regulatory Issues
NONDISCRIMINATION RULES, QUALIFIED PLANS, AND TAX TREATMENT
SEX, AGE, AND DISABILITY
AFFORDABLE CARE ACT
MONITORING FUTURE BENEFITS OBLIGATIONS
Financial Accounting Statement (FAS) 106