Employee benefits and advantages in form include various kinds of non-wage compensations offered to employees as well as their regular wages or salaries. In general cases, instances where the employee exchanges regular wages for any other form of bonus is commonly referred to as “salary packing” or “pay for performance” agreement. On the contrary, cases where companies voluntarily grant wages or salaries in lieu of other forms of bonuses are called “performance bonuses.” These agreements may be established to reward employees for good work or may be done to reward employees for good sales or for exceptional service. Performance-based agreements are more common for senior managers or supervisors rather than employees at the level of the frontline.
The types of employee benefits and advantages that may be paid in lieu of wages include health, dental and life insurance. Employees are also eligible for prorated salaries for the cost of attendance at schools, churches, and the local community college. This type of compensation is usually paid only for part of the full salary amount and deducted from future salaries. Certain religious organizations also offer financial assistance to members under certain conditions.
Employees who work in government jobs are usually provided with a regular wage, but there are some concessions. Those employed in the federal government or the military are entitled to a small prorated salary for work performed outside of regular business hours and on special holidays. Employees in government or military positions may also be awarded an extra holiday and prorated holiday pay. There are certain situations where employees are not entitled to a regular salary but still receive a prorated salary; these include emergency staff positions and members of the armed forces on active duty.
Employers may likewise reimburse employees for travel expenses and certain professional services related to employment. Benefits such as vehicle allowance and child care for the children of employees working in the same company are not tax-deductible. In addition, the tax-free allowance provided for long haul travel expenses is subject to income taxes. These are the basic employee benefits but there are more specific employee benefits available to specific employers.
Health and Life Insurance Benefit packages vary depending on an individual’s age and health status. Most employers offer medical insurance coverage. However, they usually have their own insurance plans that differ from those offered by the employee benefits insurer. Some employers also provide disability income benefits, which are basically income paid to the employee during illnesses or in case of termination from employment due to non-employment reasons. Long-term and short-term disability insurance are examples of disability insurance benefits. Sick days and vacation days are two other types of employee benefits that most employers provide.
Employers also provide common employee benefits using a variety of methods. Most employers use the method of annual flat rate compensation, which takes into account the number of days worked and total compensation. However, some companies prefer not to use this method. This is because it usually results to increased administrative cost. They prefer to pay a flat rate regardless of how many days are worked. One of the common employee benefits using this method is health insurance.
Another way of offering employee benefits is through different types of incentive pay. Different companies offer different types of incentives to employees. Some companies may offer health bonuses or dental bonuses to attract and retain quality employees. Others may offer employee gifts or items such as clothing or electronics. Aside from these two common incentive pay methods, employers also use different types of small business transactions to reward employees.
In addition, financial security is another key employee benefits. Financial security means having an income or savings that will support you or your family in old age. It can be in the form of an insurance policy, savings account or pension. However, financial security is most often offered by companies that specialize in health care. These companies usually offer health plans, disability pensions, accident benefits, long-term care, vision plans and dental and life insurance. These employer benefits, however, vary from company to company.