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Autor: lynntell01 • June 22, 2012 • Research Paper • 1,072 Words (5 Pages) • 360 Views
TO: Forward, Inc. Management Team
FROM: Human Resource Manager
SUBJECT: Company Benefits
DATE: May 28, 2012
To Whom It May Concern:
It is important for management employees to be acquainted and recognize the employee benefits and their legal binding. For this purpose the human resource department wants to explain the benefits and their differences. In addition, human resources will identify which of these benefits are used for recruiting purposes in the organization and not required by law.
Listed below are benefits not required by law
Private Retirement Plan
Private Retirement Plan is not required by law for any employer to provide to its personnel. "Employers have no legal obligation to offer private retirement plans, but many do (Heneman & Judge, 2009, p. 572) However, if the corporation does offer this type of benefit, it is required by law to set forth the Employee Retirement Income Security Act that regulates what companies do offer his or her employees in terms of the retirement plan. This benefit permits employees to separate periodically an amount of money to be available at time of retirement to be added to the social security benefit required by law. Some companies offer a corporate contribution of a certain percent in addition to the amount of money put into the retirement plan by the employee for a higher total.
Medical Insurance is a benefit that the corporation and is not required by law to be provided to its employees, therefore a company may use this benefit to attract personnel. The basic medical coverage that companies provide, usually cover expenses such as hospital, surgical expenses, and doctors' visits. Additional benefits to the medical insurance may provide medicine coverage, dental and vision care but can be more costly to the company. Though some companies may offer the benefit free of charge to the employee, some may charge a percentage to the employee, especially if the employee has spouse or family coverage. Though this benefit is not required by law, those companies that do provide it are required by law to provide Consolidated Omnibus Budget Reconciliation Act (COBRA) established in 1895 that requires organizations to have inactive employees extend the company's medical coverage to the employee and dependants. This permits employees to have the same medical coverage with the benefit of paying the same group costs instead of a higher individual rate.
Disability insurance is an insurance provided to the employee who are tax free and could be short or long-term in which each different type has specific amounts and percentages. This benefit is usually coordinated and worked concurrently with other regulated benefits such as social security benefits.
A stock option is a benefit that provides the employees the opportunity to obtain company stocks that translate into monetary gain. This benefit is usually seen in large companies.
Childcare is a benefit where companies provide support for child care of its employees. The benefit may range from information for recommended childcare establishments, discounts up to a company childcare facility for the employees to have their children. This is a pure benefit for employees who companies may provide for them but not required by law on any of