1. Chapter #13 Benefits and Services

2. Oklahoma 1907 - 2007  www.netstate.com/state_seals.htm www.netstate.com/state_seals.htm

3. Benefits Indirect financial and non financial payments employees receive for continuing their employment with the company. 28% of payroll $ $888.00 per family monthly 7.00 per payroll hour

4. Legally Required –Workers Comp –Unemployment –FMLA –SSI Optional –401K –Health, Dental –Sick –Vaction –Retirement –Life insurance –Childcare –Profit sharing –Pensions

5. Classifications of Benefits 1. Pay for time not worked 2. Insurance benefits 3. Retirement 4. Services

6. Pay for time not worked Look page #481 Supplemental benefits –Most costly –Paid time off 30% of total benefits Holidays –Vacations »Jury duty »Funeral leave »Military leave »Personal days »Sick days »Sabbatical leaves »Maternity leave »unemployment

7. Know Your Law ERISA –Requires ers to have plans in writing Job Creation and Workers Assistance Act ROIs, ers must use in pension funds Newborn Mothers Protection Act Minimum stays in hospitals Mental Health Parity Act Insurance companies can not set limits HIPAA FMLA ADA

8. HIPAA Protection of health information

9. Survey of benefits 89% received paid holidays 96% paid vacations 77% medical coverage 80% retirement 87% life insurance

10. Sick Leave provides pay to employees when they are out of work due to illness –Usually full pay for # of days – up to 12 per year –45 % of actually sick days are actually for the sick –Family issues 27% –Personal needs 13% –Mental problems 9% –Stress 6% –Other reasons

11. Unemployment 26 weeks If a person is unable to work through some fault other than his or her own. Derived from tax.1% to 5% of payroll Depends on rate of terminations Release through no fault of ee

12. Vacations and Holidays US average 10 days per year Mexico 6 days Sweden 25 days France 25 days

13. Sick leave cont. Very expensive Solutions Leave banks PTO Well pay

14. Family Medical Leave Act FMLA Bill Clinton Parental Leave (1250 hours to qualify) (1/2 of all worker today are women and 80% will become pregnant during their work lives) –Private ers of 50 or more –12 weeks unpaid leave –Ers can require ees to take unused paid sick leave or annual leave as part of the 12 weeks –EE are entitles to insurance –EE guaranteed return to previous status with no loss of benefits

15. Severance Pay A one time payment some employers provide when terminating an employee. –Humanitairan Since ers require a two week notice from ees To avoid litigation 82% firms have it Either salary or lump sum Depends on length of employment I wek for each pay year unless you are an exec and its 39 average

16. Supplemental unemployment For temporary shutdowns – GM for remachining –Supplements unemploymenet

17. Workers Comp Pay for work related injury Pay for death to survivors Paid by % of injury Temporary – partial or total Permanent – partial or total Costs depend on type of industry and probable danger –Increases with # of claims –High costs to business that add no value

18. Hospitalization, Health and Disability Insurance HMO –A prepaid health care system that generally provides routine routine the clock medical services as well as preventive medicine in a clinic type arrangement for ees. Who pay a nominal fee in addition to the fixed annual fee the er pays PPO –Groups of health care providers that contract with ers, insurance co. or third party payers to provide medical are at a reduced fee.

19. Reducing Health Costs Look # 487 “Cost Savings” Have a deductible Increase amount of deductibles Use gatekeepers Encourage prevention Wellness programs Form coalitions Treat AIDS victims in the home

20. Pregnancy Discrimination Act Pregnant women can not be discriminated against. Ers have to give same benefits as anyone else. weeks

21. COBRA Private employers must continue to make health benefits available to terminated or retired ees for 18 months Ee must pay at same rate. –Use acknowledgement form to show that ees have been told COBRA rights –Look # 490 Recordkeeping

22. SSI Paid on EE wages Shared equally between ee and er 7.65% of gross salary up to 80,400$ Self employed pay 15.3% 67Yr to get it if born after 1960

23. Social Security Federal program that provides three types of benefits –$ age 62 –Survivors –Dependents –Disability –EE has to be insured to get them –Medicare is also administered through SSI –7.65% of f irst $87,900

24. ERISA Pension funds are to be protected and insured (Pres Ford 1974) Vesting after 5 years service funds cannot be forfeited by ee. Contributions are always there plus ers contribution Pension Benefits Guarantee CORP – Insurance pension plans against bankruptsy –Portability

25. Pensions Plans Defined Benefits Ee knows exactly how much Contribution Plans 401K pretax deduction »New law increased to 15,000 yr 2006 Deferred Profit sharing ESOP Golden offerings Early retirement benefits Be careful of discrimination

26. Personal Services and Family Benefits Credit Unions EAPS Childcare Subsidized health care Compressed work weeks

27. Benefits cont. Job sharing Eldercare Telecommuting Education tuition reimbursements Transportation to work