10.4 Employee Benefit Plans
Employee benefit plans are plans that benefit employees! Now that's pretty simple. What is NOT simple is how many types of plans there are and the complexities of each. Plans can be health, life, pension, profit sharing, or any combination.
- Retirement plans - Pensions, profit-sharing plans, employer-sponsored IRAs, 401(k), and 403(b) plans
- Group life and health plans
- Child care plans
- Educational assistance programs
- Disability plans
- Survivor benefit plans
- Wellness programs
Just to name a few. Let's now look at some of the rewards the company reaps.
- Tax advantages
- Contributes to employee morale and productivity
- Solution to compensating family at time of employee's death
- Holds down employee demands for rapid wage increases
- Employer can be competitive in hiring and retaining employees
- Enhances employer image in both public and employee relations
