العربية
中国
Français
Deutsch
Ελληνική
हिन्दी
Italiano
日本語
Português
Русский
EspañolEMPLOYEE BENEFIT
(Redirected from Employee benefits)
'Employee benefits' and (especially in British English) 'benefits in kind' (also called 'fringe benefits', 'perquisites', or 'perks') are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree.
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
The purpose of the benefits is to increase the economic security of employees.
The term 'perks' is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are company cars, 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.
Employee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption assistance; child care benefits; and possibly other miscellaneous employee discounts (''e.g.'', movies and theme park tickets, discounted shopping, hotels and resorts, and so on).
Some fringe benefits (for example, accident and health plans, and group-term life insurance coverage up to US$50,000) may be excluded from the employee's gross income and, therefore, are not subject to federal income tax in the United States. Some function as tax shelters (for example, flexible spending accounts, 401(k)'s, 403(b)'s). Fringe benefits are also thought of as the costs of keeping employees other than salary. These benefit rates are typically calculated using fixed percentages that vary depending on the employee’s classification and often change from year to year.
Normally, employer provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits (e.g. golden handshake and golden parachute plans).
American corporations may also offer cafeteria plans to their employees. These plans would offer a menu and level of benefits for employees to choose from. In most instances, these plans are funded by both the employees and by the employer(s). The portion paid by the employees are deducted from their gross pay before federal and state taxes are applied. Some benefits would still be subject to the FICA tax, such as 401(k) and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.
The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.
In the UK, Employee Benefits are categorised by three terms :
Flexible Benefits (Flex) and Flexible Benefits Packages, Voluntary Benefits and Core Benefits.
Flexible Benefits, most often called a "Flex Scheme" is where employees are allowed to choose how a proportion of their remuneration is paid. This is normally delivered by allowing employees to sacrifice part of their pre-tax pay in exchange for a car, additional holiday, a shorter working week or other similar benefits. A number of external consultancies exist that enable organisations to manage Flex packages and they centre around the provision of an Intranet or Extranet website where employees can view their current flexible benefit status and make changes to their package.
Voluntary Benefits is the name given to a collection of benefits that employees choose to opt-in for and pay for personally. These tend to be schemes such as the government-backed (and therefore tax-efficient) Bike2Work and Childcare Vouchers schemes and also specially arranged discount schemes for employees such as group ISAs. Employee Discount schemes are often setup by employers as a perk of working at the organisation. They can be run inhouse or arranged by an external employee benefits consultant.
Core Benefits is the term given to benefits which all staff enjoy, such as holiday, sick pay and sometimes flexible hours.
In the UK, the employee benefit market is split between larger employee benefit consultancies (Mercers, Watson Wyatt, Towers Perrin), the mid-market (Thomsons Online Benefits, Gissings) and smaller bespoke advice & consultancy organisations.
In a number of countries (e.g., Australia, New Zealand, and India) the 'fringe benefits' are subject to the Fringe Benefits Tax (FBT), which applies to most, although not all, fringe benefits.
★ Profit sharing
★ Novated lease
★ Directory of UK based voluntary benefits consultancies and research materials
★ Website for UK based Employee Benefits magazine, published by Centaur
★ White paper on voluntary employee benefits focusing on the role of employee discount schemes in the overall benefits and reward mix
★ Website for UK based "Rewards & Benefits" magazine, published by Incisive Media
★ Website for UK based employee benefits consultants
★ White paper "The Rise of the nanny employer" - discussing how far should an employer go in terms of benefits and intervention.
★ Employee Rewards Watch 2006 - results of survey of 500 HR Managers in the UK on benefit and reward issues
★ Online archive of the monthly e-magazine Benefits Connection which includes research and case studies from UK employers on benefits, reward and employee discounts
'Employee benefits' and (especially in British English) 'benefits in kind' (also called 'fringe benefits', 'perquisites', or 'perks') are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree.
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
The purpose of the benefits is to increase the economic security of employees.
The term 'perks' is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are company cars, 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.
| Contents |
| United States |
| United Kingdom |
| Fringe Benefits Tax |
| See also |
| External links |
United States
Employee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption assistance; child care benefits; and possibly other miscellaneous employee discounts (''e.g.'', movies and theme park tickets, discounted shopping, hotels and resorts, and so on).
Some fringe benefits (for example, accident and health plans, and group-term life insurance coverage up to US$50,000) may be excluded from the employee's gross income and, therefore, are not subject to federal income tax in the United States. Some function as tax shelters (for example, flexible spending accounts, 401(k)'s, 403(b)'s). Fringe benefits are also thought of as the costs of keeping employees other than salary. These benefit rates are typically calculated using fixed percentages that vary depending on the employee’s classification and often change from year to year.
Normally, employer provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits (e.g. golden handshake and golden parachute plans).
American corporations may also offer cafeteria plans to their employees. These plans would offer a menu and level of benefits for employees to choose from. In most instances, these plans are funded by both the employees and by the employer(s). The portion paid by the employees are deducted from their gross pay before federal and state taxes are applied. Some benefits would still be subject to the FICA tax, such as 401(k) and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.
The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.
United Kingdom
In the UK, Employee Benefits are categorised by three terms :
Flexible Benefits (Flex) and Flexible Benefits Packages, Voluntary Benefits and Core Benefits.
Flexible Benefits, most often called a "Flex Scheme" is where employees are allowed to choose how a proportion of their remuneration is paid. This is normally delivered by allowing employees to sacrifice part of their pre-tax pay in exchange for a car, additional holiday, a shorter working week or other similar benefits. A number of external consultancies exist that enable organisations to manage Flex packages and they centre around the provision of an Intranet or Extranet website where employees can view their current flexible benefit status and make changes to their package.
Voluntary Benefits is the name given to a collection of benefits that employees choose to opt-in for and pay for personally. These tend to be schemes such as the government-backed (and therefore tax-efficient) Bike2Work and Childcare Vouchers schemes and also specially arranged discount schemes for employees such as group ISAs. Employee Discount schemes are often setup by employers as a perk of working at the organisation. They can be run inhouse or arranged by an external employee benefits consultant.
Core Benefits is the term given to benefits which all staff enjoy, such as holiday, sick pay and sometimes flexible hours.
In the UK, the employee benefit market is split between larger employee benefit consultancies (Mercers, Watson Wyatt, Towers Perrin), the mid-market (Thomsons Online Benefits, Gissings) and smaller bespoke advice & consultancy organisations.
Fringe Benefits Tax
In a number of countries (e.g., Australia, New Zealand, and India) the 'fringe benefits' are subject to the Fringe Benefits Tax (FBT), which applies to most, although not all, fringe benefits.
See also
★ Profit sharing
★ Novated lease
External links
★ Directory of UK based voluntary benefits consultancies and research materials
★ Website for UK based Employee Benefits magazine, published by Centaur
★ White paper on voluntary employee benefits focusing on the role of employee discount schemes in the overall benefits and reward mix
★ Website for UK based "Rewards & Benefits" magazine, published by Incisive Media
★ Website for UK based employee benefits consultants
★ White paper "The Rise of the nanny employer" - discussing how far should an employer go in terms of benefits and intervention.
★ Employee Rewards Watch 2006 - results of survey of 500 HR Managers in the UK on benefit and reward issues
★ Online archive of the monthly e-magazine Benefits Connection which includes research and case studies from UK employers on benefits, reward and employee discounts
This article provided by Wikipedia. To edit the contents of this article, click here for original source.
psst.. try this: add to faves
