The first type of benefit is legally required benefits. As their name implies, these are benefits that employers are required (by law) to provide for their employees. The second type of benefit is discretionary benefits. These are benefits that employers
may offer even
though they are not required to do so.
What do discretionary benefits mean?
Discretionary benefits refer to
any type of benefits you are not required to provide by law
. This umbrella term includes myriad benefit types, from supplementary dental and vision insurance to perks like wellness programs and child care stipends.
What is legally required benefits?
Legally required benefits
provide workers and their families with retirement income and medical care
, mitigate economic hardship resulting from loss of work and disability, and cover liabilities resulting from workplace injuries and illnesses.
Can legally required benefits be waived?
There is no penalty for opting out of coverage.
When an employee doesn’t want health insurance from their employer, they waive coverage
. Or, employees can waive coverage on behalf of a family member who was previously under their plan. A waiver of coverage is a form employees sign to opt out of insurance.
What is the difference between discretionary benefits and perks?
While there isn’t a hard and fast rule, a helpful distinction between benefits and perks is this:
benefits are non-wage compensation that supplements an employee’s salary
. … Perks, on the other hand, are extra rewards or incentives on top of salary and non-wage compensation.
Is Christmas bonus same as 13th month pay?
To enlighten employers and workers alike, the 13th Month Pay is not the same as the Christmas bonus. The only shared similarities that they have is
that they are both monetary and given out by employers
.
What are optional benefits?
Optional employee benefits are
additional insurance that an individual employee can add to their existing plan to enhance their coverage levels
. Optional Life Insurance. This type of Life Insurance coverage enhances the benefit amount paid to the named beneficiary in the event of an insured person’s death.
What are examples of discretionary benefits?
Discretionary benefits are employment benefits that are not mandated by law. They can include a range of employee benefits, such as
health insurance, sick leave, maternity leave, vacation leave, pension plans, life insurance, and prescription drug insurance
.
What are the most important discretionary benefits?
The top three most important discretionary benefits, in my opinion, are
Employee Assistant Programs (EAPs), Disability and Life insurance, and retirement
.
What are the three main reasons that employers offer discretionary benefits?
- Income and Health Protections (sick leave)
- Paid Time-Off (vacation, holidays)
- Accommodation and Enhancement (wellness programs or educational assistance are examples)
Can you deny benefits for more pay?
Benefits often come out of a different budget line than salaries do. … If he fires a coworker, he may be able to reallocate that person’s salary. But, if someone declines benefits, he doesn’t get
to use that
money. So, while he may be amenable to the idea he may be powerless to change your salary.
Can I refuse health insurance from my employer and get Obamacare?
If you decline individual health insurance through your employer,
you can enroll in an Obamacare plan through the Marketplace
. Although you most likely will not qualify for any subsidies or other financial assistance. You will only be able to qualify for cost savings if the following applies: 1.
What are the two most common benefits not mandated by law?
Benefits Not Required by Law
Some non-required benefits include certain forms of
supplemental insurance
, life insurance, retirement savings plans, dental and vision care, wellness programs, and some salary perks.
What are the top 10 employee benefits?
- #1 Financial Wellness Programs. …
- #2 Flexible Work Arrangements. …
- #3 Health Insurance Benefits. …
- #4 Paid Time Off. …
- #5 Mental Health Benefits. …
- #6 Family-Friendly Employee Benefits. …
- #7 Professional Development Benefits. …
- #8 Student Loan Employee Benefits.
What are examples of perks?
- Healthy vending machine or cafeteria options.
- Gym membership reimbursement.
- Required breaks (bonus for nap rooms, tea stations, etc.)
- Wellness activities like yoga, meditation, walking clubs.
- Standing desks (or convertible options)
What are the best benefits a company can offer?
- Health insurance. …
- Life insurance. …
- Paid time off—that actually gets taken. …
- Family leave. …
- 401(k) and retirement planning. …
- Student loan assistance. …
- Career development. …
- Provided lunch.
