Employee Benefit Options
Employee benefits are perks that employees receive when they work for a business. Some benefits are simple and required, based on employer regulations made by the state. But most benefits are up to the discretion of the business owner and range from insurance options to investment plans. The goal is to attract the best employees with a package of extras. In the United States, many benefits plans are progressing toward open-ended options that include lifestyle perks designed for more general well-being.
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Health
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Health insurance is one of the most common discretionary benefits that companies offer. Employers pay a portion of the premium themselves and deduct the rest from the employee's paycheck. Depending on the contract with the insurance company, employers can also include extras like health savings accounts and flexible spending accounts. Many health insurance programs are trending toward comprehensive plans that offer gym memberships, nutritional classes, dieting programs and other options that help employees prevent illnesses as well.
Stock
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Stock options are another very common employee benefit. These options give employees the ability to purchase company stock at a specific price, once the employees have been vested with several years of work in the company. There are two types of stock option plans, one that has reduced taxes and is difficult for employees to qualify for, and one that is more flexible but incurs normal taxes. Employers can also offer stock benefits that allow employees to invest in stock outside the company.
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Retirement
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Retirement plans like 401ks and similar investment accounts give employees the ability to divert funds for retirement. These funds are typically tax-sheltered and can build through interest. They can also be matched by employer funds over time. Many employers include extra services along with retirement benefits, such as advisors who help employees make strategic decisions about their financial future and what they want from their investments in general.
Disability and Life
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Disability and life insurance are also common options for benefits plans. Both provide support if employees die or become disabled so they can no longer work. While these plans can be used less often than other benefits, they provide assurance to employees and their families.
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