The employee benefits plan is the collective name of all benefits provided by employers except direct wages. In the United States, employers generally provide employees with medical insurance, endowment insurance, life insurance, and disability insurance.
According to a survey by the U.S. Department of Commerce, employees’ welfare expenditures account for the total amount of general corporate expenses. Of the total employee welfare expenditures, the expenses for specific items are as follows: medical and health insurance, unemployment and disability insurance, pensions, or corporate annuities. Coincidentally, general life insurance accounts.
Insurance premiums are likely to account for 8% to 10% of the total salary. And most of the insurance premiums are health insurance premiums. There are three main types of health insurance that you can provide to your employees: traditional insurance (medical expenses), HMO (health management organization) insurance plans, and PPO (priority organization) insurance plans.
Employees participating in traditional health insurance schemes have maximum flexibility. They can choose a doctor, a hospital, and they can change doctors at any time. However, this program is costly and does not include preventive medical expenses such as physical examination, vaccination, and excellent child care. There are three forms of traditional medical cost health insurance: primary, critically ill, and comprehensive. The necessary type covers only part of the cost of hospitalization and treatment for all treatment costs. The sick critically medical type mainly targets items not covered by the primary model, while the whole class combines the characteristics of the severe and primary medical type.
Employees pay a small co-payment of $ 5 to $ 25 when they go to the clinic for treatment or emergency, but this medical service is often restricted. An employee is usually required to choose a doctor as a PCP, who is responsible for checking the employee’s health status and referring to a medical specialist as appropriate. Employees cannot go to a medical specialist until the first-time doctor agrees and arranges a referral unless the employee is willing to pay the medical expenses themselves.
Long-term and short-term disability insurance:
In the United States, many employers do not provide short-term disability insurance ( STD ), but some states require employers to offer STD insurance for up to 26 weeks. Short-term disability insurance is designed to compensate for an employee’s short-term income during the period of disability, usually equivalent to about 60% of the employee’s weekly salary. In this way, an employee’s insurance compensation during the period of limitation is close to the actual income lost due to the injury.
There are two types of pension plans: fixed-contribution pension plans and fixed-income pension plans.
A fixed-income pension plan is a fixed-income plan, and the company’s contribution to the program is based on the estimates of an actuary. Employees can know the number of their pensions and make plans accordingly.
I look forward to:
We’ve discussed several well-established benefits programs, One of the most important things to keep in mind when planning or adjusting a company’s benefits package is that helping employees balance work and family life has become an increasingly prominent trend. If you work with your employees so that they can not only do their jobs well, but also have time to enjoy their lives, then you will be rewarded with a loyal, efficient, and united employee team.