Types and Purpose of Employee Benefits
– Housing (employer-provided or employer-paid)
– Group insurance (health, dental, life, etc.)
– Disability income protection
– Retirement benefits
– Tuition reimbursement
– Increase economic security of staff members
– Improve worker retention
– Component of reward management
– Perks are given to employees who perform well or have seniority
– Perks can include take-home vehicles, hotel stays, etc.
Employee Benefits in Canada
– Employer-sponsored life, disability, health, and dental plans
– Group insurance plans coordinate with provincial coverage
– Group savings plans (Group RRSPs and Group Profit Sharing Plans)
– Basic Dental, Major Dental, and Orthodontics coverage
– Employee Assistance Programs and vision coverage
Employee Benefits in the United States
– Relocation assistance
– Medical, prescription, vision, and dental plans
– Retirement benefit plans (pension, 401(k), 403(b))
– Income protection plans (disability protection)
– Paid time off (vacation and sick pay)
Taxation and Exemptions of Employee Benefits
– Some fringe benefits may be excluded from employees’ gross income
– Tax shelters like flexible spending accounts, 401(k), or 403(b) accounts
– Employer-provided benefits are tax-deductible and non-taxable to employees
– Cafeteria plans funded by employees and employers
– Exclusion of employer-provided meals and lodging from gross income
Employee Benefits in the United Kingdom
– Benefits in the UK are categorized as flexible benefits, voluntary benefits, and core benefits
– Core benefits include pension, life insurance, income protection, and holiday
– Flexible benefits allow employees to choose how a portion of their remuneration is paid
– Salary sacrifice benefits, such as childcare vouchers and pensions, are popular in the UK
– 62% of UK employers offer flexible benefit packages Source: https://en.wikipedia.org/wiki/Employee_benefits
Employee benefits and benefits in kind (especially in British English), also called fringe benefits, perquisites, or perks, include various types of non-wage compensation provided to employees in addition to their normal wages or salaries. Instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a "salary packaging" or "salary exchange" arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid) furnished or not, with or without free utilities; group insurance (health, dental, life etc.); disability income protection; retirement benefits; daycare; tuition reimbursement; sick leave; vacation (paid and unpaid); social security; profit sharing; employer student loan contributions; conveyancing; long service leave; domestic help (servants); and other specialized benefits.
The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization. As such, it is one component of reward management. Colloquially, "perks" are those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well or have seniority. Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist.
