Q:

What are some benefits employers include in compensation plans?

A:

Quick Answer

Employment compensation plans typically include salary or hourly wages, health insurance, life insurance, paid time off and retirement plans. Many employers also offer disability insurance, flexible spending accounts, an Employee Assistance Program and tuition reimbursement. For positions such as management and sales, the benefits package may include a bonus structure. Stock ownership, relocation assistance and sponsorship for U.S. citizenship are some benefits that are more common in certain types of companies or for high-demand positions.

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Full Answer

Employers usually offer a choice of medical insurance plans and cover part of the premium cost, with employees paying the remaining cost on a pre-tax basis. Dental and vision coverage may be included in the medical insurance, though these are typically separate plans.

Paid time off may include separate numbers of days off for illness, vacation and personal time, or the benefit may specify one amount of time off that employees can use as they need or choose. Other paid time off includes military leave, jury duty and bereavement days.

A retirement plan such as the 401(k) plan may or may not come with an employer match to employee contributions. Usually an employer matches a portion of the contribution up to a specified maximum amount.

Short- and long-term disability plans pay a percentage of the employee's normal salary or wages when the employee is unable to work due to prolonged illness or injury. Flexible spending accounts enable employees to pay for health-related costs such as co-pays and deductibles and for dependent care using pre-tax dollars. The Employee Assistance Program typically offers psychological counseling for work-related issues, family problems, alcoholism and drug addiction; some EAPs also include legal counsel. Tuition reimbursement benefits are usually for education related to the employee's professional development, though some companies also offer limited tuition benefits for the education of employee's children.

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