Employee Benefits Simplified Summary 2012

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• The Environment of Employee Benefits Essay

  ...The Environment of Employee Benefits The overall employee benefits spectrum is in a constant state of change. These changes are a result of new governmental regulations, rising costs of medical care and benefits, and new benefit options. In 2014, the Affordable Care Act was implemented and changed the scope of health care benefits as a whole. The ACA aims to reform national healthcare and give more people access to affordable healthcare. The overall goal of the act is to cover all people, regardless of their conditions or other factors that play a role in receiving a health care plan. The ACA has incentives and tax breaks on individual and small businesses. However, it greatly impacts large organizations in a sense that they are now required to cover all employees and provide documentation supporting it. Employee benefits have become an expected and valuable part of the employees’ overall total compensation package. Benefits play an integral role when deciding to join or leave an organization. It serves as a powerful recruiting tool for employers looking to hire and keep the most talented workers in the competitive market place. Offering a competitive salary combined with benefits and perks has proven to promote improved work habits and reducing employee turnover. It also provides employees...

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• Employee Benefits Essay

  ...Employee benefits Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated. Often, attraction and retention of employees are key business issues. The discussion of employer goals for retirement benefits below and the data provided demonstrate that employers are viewing the provision of these benefits as a key business issue, with attraction, retention and being competitive being the three top goals. Employee benefits help attract and retain good employees. For many individuals, the availability of satisfactory health benefits is essential if they are to consider employment, and health benefits are often a consideration in leaving jobs as well. This may change in 2014, after the implementation of the Affordable Care Act. Employers can improve the net welfare of their employees through offering benefits. Employee benefits are often tax-effective, so that a dollar spent on benefits gets more than a dollar of value for employees. Benefits provided on a group basis are generally more cost-effective than individual insurance. In addition, group purchase allows all employees to be covered, not just those in good health. Well-structured and -managed defined benefit plans generally...

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• Employee Benefits Essay

  ...Intro Compensation and benefits packages are used by companies to retain and attract talent. Benefits can be used to keep employees happy at work and to up your overall productivity. In this economy it is vital to offer competitive compensation and benefit packages to assist in the retention as the economy rebounds from its current state. In order to offer a competitive package, you should be aware of the types of employees you are looking to attract and also the employees that are currently working for the company. There are three different generations of employees as of today: Baby Boomers (born 1946-1964), Generation Xers (born 1965-1976) and Millennials (born 1977-1995). They all have a certain aspect that can be essential to the organization. There is no generalized form of compensation and benefits to cover all of these generations; therefore you need to produce multiple packages that are appealing to different generations. Just like there is no generalized form, the costs to the employer varies from industry to industry and especially when considering private versus public sectors. Benefits are essential to gaining and retaining employees and to properly weigh benefits against one another it helps to find the cost relative to what is made by the employee hourly. Baby Boomers, who were born anywhere from 1946-1964, have a different preference in what they...

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• Employee Benefits Essay

  ...Employee benefits 1.) Pogi Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2011 was P500,000. The employee is expected to retire in 10 years, and the salary increase are expected to average 4% per year during the period. On December 31, 2011, the employee has worked for 15 years, The future value of 1 at 4% for 10 periods is 1.48. What is the annual pension payment that should be used in computing the projected benefit obligation on December 31,2011? a. 555,000 b. 375,000 c. 333,000 d. 225,000 Answer: c Solution: Future salary (500,000 x 1.48) 740,000 Annual pension payment – PBO 333,000 (740,000 x 3% x 15years) Annual pension payment - ABO 225,000 (500,000 x 3% x 15years) The projected benefit obligation (PBO) is based on future salary while accumulated benefit obligation (ABO) is based on current salary. 2.) Warlock Company has established a defined benefit pension plan for its lone employee. Annual payments under the pension plan are equal to the employee’s highest lifetime salary multiplied by 2% multiplied by number of years with the entity. On December 31, 2011, the employee...

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• Essay on Employee Benefits

  ...Employee Benefits Theatric L. Ishmon Upper Iowa University Human Resource Management October 19, 2012 Abstract Employee benefits could possibly be one of the most important factors that employees look at when deciding on a place of employment. As employers are not legally required to grant all benefits, some voluntarily grant legally not required benefit as a way of differentiating their organization from their competitors. Because of the many forces that must be weighed and kept in balance for a benefits program to succeed, benefit program should be compatible with the organizations strategic compensation plan. Employee benefits can be important to both organization and employees. It could be assumed that organizations use benefit programs as of way of attracting and retaining talent. Also, it could be possible that benefit plans are important to employees as well for reasons such as balancing work-life or a sense of security. Employee Benefits There can be an assumption made that the wage, or salary offered by employers is one of the top factors people look at when they apply or accept a job. But is this true? It could be assumed that some people feel that benefits offered by employers are more important. According to the Bureau of Labor...

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• Employee Benefits Essay

  ...Employee benefit plans are continually evolving as the needs, desires, and majority age of the working population shift. In addition to these factors, the fluctuating state of our economy and the healthcare reform are driving employers to find creative ways to continue to provide, or enhance, benefits while still cutting costs. According to a survey conducted by the SHRM Foundation, 72% of HR professionals reported that the benefits offerings at their organization have been affected in some way due to the Post-Recession Economy . At minimum, an annual review, as well as solid guiding principles of the benefit program can assist employers in staying in line with, or even ahead, of trends. While the impact of the economy and the new healthcare legislation has created considerable challenge, it is also creating opportunities for employers to think outside the box and begin to revolutionize traditional benefit programs. There is a trend, while not novel, that offers a health savings account as one of the options in a cafeteria plan. This is a move away from, what has been considered ideal for so many years, the traditional co-pay, coinsurance, and annual deductible cafeteria selections with varying levels of coverage and employee premium deductions. The utilization of an employer, employee, or combination thereof, funded health reimbursement account (HRA)...

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• employee benefits Essay

  ...IAS 19 EMPLOYEE BENEFITS HISTORY OF IAS 19 April 1980 Exposure Draft E16 Accounting for Retirement Benefits in Financial Statements of Employers January 1983 IAS 19 Accounting for Retirement Benefits in Financial Statements of Employers 1 January 1985 Effective Date of IAS 19 (1983) December 1992 E47 Retirement Benefit Costs December 1993 IAS 19 Retirement Benefit Costs (revised as part of the 'Comparability of Financial Statements' project based on E32) 1 January 1995 Effective Date of IAS 19 (1993) Retirement Benefit Costs October 1996 E54 Employee Benefits February 1998 IAS 19 (1998) Employee Benefits 1 January 1999 Effective Date of IAS 19 (1998) Employee Benefits October 2000 Limited Revisions to IAS 19 1 January 2001 Effective Date of IAS 19 (2000) Employee Benefits May 2002 'Asset Ceiling' amendment to IAS 19 (2000) Employee Benefits 31 May 2002 Effective Date of IAS 19 (2002) Employee Benefits 5 December 2002 Amendments to IAS 19.144-152 are proposed as part of the IASB's project on Share-Based Payment February 2004 IAS 19.144-152 on equity compensation benefits are replaced by IFRS 2 Share-based Payment 29 April 2004 Exposure Draft of Proposed Amendments...

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• Essay about Employee Benefit

  ...Smith 1. The importance of employee benefits as a strategic component of fulfilling the goals of human resource management is to find, attract, and retain quality employees (DeCenzo & Robbins, 2009). Treating employees with respect, offering bonuses, rewards, on site lunches, etc. helps keep employees happy, and loyal. The main purpose for employee benefits is to find qualified candidates to fill positions, and want to stay within the company. Without offering employee benefits, employees wouldn’t remain loyal, and productivity would be low. Benefits are an employees’ incentive to want to do their job to the best that they possibly can, as well as stay loyal to the company. In today’s economy, employees want more than just an hourly wage. They want additional benefits that will enrich their lives. Employee benefits have become more important to individuals throughout the years, and employers realize that are a necessary components effective compensations programs. Employers also realize that it’s the benefits that they offer is what attracts employees to the organization, helps candidates decide whether they want to accept an employment offer, and decide to stay within the company after being employed (DeCenzo & Robbins, 2009). Employee benefits are important because they also...

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