Comparing required and optional employee benefits across compensation plans
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Job Benefits Training Aid
Pay Plans
Required Benefits
Optional Benefits
EX1 -- Base Salary $20,000 per year
Bonuses
An Additional $800 per year of service
FMLA -- Family Medical Leave Act of 1993. Not Required by companies with under 50 employees.
Healthcare
Advantages -- Provides coverage to excessive medical conditions and financial loss from them.
Disadvantages -- Reduces the amount of the employee's paycheck
Base Salary
$25,000 per year
Bonuses
Additional bonuses for meeting quarterly sales goals as determined by company
Social Security Taxes - Social Security Act of 1935 provides benefits to employees in the case of retirement, disability, death, and survivor's benefits. These benefits are all under different sections of the code.
Vacation
Advantages -- Allows Employee the ability to take time off of work for personal reasons and to refresh themselves. Reduces work-related stress.
Disadvantages -- Employee not eligible until they have been with the company for 1 year. Vacation does not accrue from year to year, based on anniversary date.
EX2 - Base Salary
$25,000 per year
Bonuses
An Additional $1,000 per year of service
Unemployment Insurance -- Under Social Security Act of 1935. Temporary income when the business cycle slows and produces hardship leading to lay-off within the company.
Holiday Pay
Advantages -- Employees get 8 recognized paid holidays. Allows employees the ability to spend quality time with families which aids in obtaining a proper work-life balance.
Disadvantages -- Employee must work the day before a major holiday and the day after a major holiday.
EX3 - Base Salary
$30,000 per year
Bonuses
An Additional $1,200 per year of service
Workers Compensation -- Program administered by individual states to protect employees in case of work-related injuries or disease that are a direct result of their employment.
Life Insurance
Advantages -- Provides benefits should a worker be lose their life
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