Personal Finance

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Questions: In your opinion, what are the most important benefits an employer can offer? Would you accept a full-time job where benefits were not offered? Why or why not? Should the government have the right to dictate whether or not employers offer benefits?

Introduction Benefits: forms of employee compensation in addition to pay Some required by law Unemployment Social Security and Medicare Others are optional

Profit Sharing Employee receives a portion of company profits Incentive Pay Motivation to work harder Links company profits to employee pay

Paid Vacations & Holidays Paid as usual while on vacation Paid Holidays Usually paid more than regular wages if work Usually applies to full-time employees

Employee Services Extras to improve morale and working conditions Company discounts Social and recreation programs Day care centers Tuition reimbursement

Child Care and Sick Pay Pay child care expenses Paid on days you are sick Generally for full-time employees May carry over year-to-year May not earn until you have worked a year first

Leave of Absence Temporary leave job for life events Family Medical Leave Act (FMLA) Care for self or immediate family member Up to 12 weeks Unpaid Benefits stay intact Job Security Return to same or equal position

Insurance Most large companies provide insurance plans May pay for all or some of insurance cost Premiums Payments made in advance in order to have insurance coverage

Health Insurance Deductible Amount an employee pays before insurance kicks in Co-pay The portion of a bill that you pay AFTER deductible is paid Most medical bills are paid Fewer employers offering health insurance Types of insurance Group Health Insurance Individual Health Insurance COBRA

Dental & Vision Insurance Dental Routine exams usually covered 100% Braces often not included May have a small deductible Vision Covers prescriptions and eye exams Frames usually not covered

Life Insurance Purpose: provide income when a wage earner dies Beneficiary: person who receives the cash Policy may end if you leave the job

Bonuses and Stock Options Bonuses Incentive pay Signing bonus Holiday bonus Bonus amounts tied to profits Stock Options Allows you to buy shared of stock at a discounted price

Pension Plans Traditional Pension Plan: employer provides money to an employee during retirement Based on salary and years of service Vested: entitled to full benefit Employer Savings Plans Employee pays most of the amount Example: 401K

Flexible Spending Account Also known as a “flex plan” Money taken out of paycheck pre-tax Money put into an account to be used for qualifying medical expenses and child care expenses Maximum $5,000 Use it or lose it

How flex plans work? Source: