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Student name: __________________________________
Date:________________
MODULE
26
List and describe fringe benefits
provided
by the employer.
Objectives:
A. Determine
fringe benefits available from some employers.
B. List and describe fringe benefits provided by your
employer.
MODULE 26: INFORMATION SHEET
TO THE STUDENT: Read
and study the following information sheet and then complete the student
activities at the end of this module.
What are fringe benefits?
In addition to wages, certain fringe benefits are available from some employers. Not all employers provide the same "fringes." Some employers provide no fringe benefits at all, while others may pay some of the cost and the employees pay a portion of the cost (co-pays for the benefit). Other employers may provide a good fringe benefit package and lower wages or pay higher wages and fewer fringe benefits.
Although
not usually considered fringe benefits by most employees, employers must
provide, and either pay for entirely or contribute toward, certain benefits
mandated by Federal or State law. Examples are the Social Security Program,
Unemployment Compensation Benefits, and Workers Compensation Insurance.
Social Security Program
The cost of the Social Security Program, including the hospital insurance portion of Medicare is shared by the employer and employee equally. Social security provides payment to retirees, their dependents and survivors and to the totally disabled.
Unemployment Compensation Insurance
Unemployment Compensation Insurance is usually paid for by the employer. When economic conditions warrant, the employee will also contribute to the fund. Through unemployment compensation, an employee can collect payments for a limited time if laid-off or unable to work through no fault of their own. Those students employed through their Cooperative Education Program do not qualify for Unemployment Compensation benefits upon termination of employment. Neither does the time worked qualify to be used toward accumulating the necessary credit weeks needed for future coverage.
Workers Compensation Insurance
Workers Compensation Insurance is paid for by the employer. Workers Compensation provides for lost wages and medical care that result from a work-related condition or injury. The cost of these mandated benefits as well as the cost of all "fringes" should be added to the wage of the employee to determine the true wage.
Other possible fringe benefits
Other
fringe benefits that are either negotiated for by each employee or group of
employees, or provided for voluntarily by employers without negotiations as
part of the employment package. [Note: (f) and (g) are regulated by Federal
Law.]
a. Holiday
Pay - usually major holidays such as Thanksgiving, Christmas, New Year's Day,
etc.
b. Paid Vacation - sometimes one week's vacation after one year of service. Vacation time is earned with years of service completed.
c. Life Insurance
- Usually group term life insurance for a set amount -- usually $10,000 to
$50,000 or more, sometimes based on the employee's salary.
d. Medical Insurance
- Can include hospitalization, physician's services, prescription drugs, vision care, dental care;
all or some of these services can include various deductibles and Co-pay provisions.
e. Bereavement
days - Paid days off when a member of your family dies.
f. Child Rearing
Leave - Usually an unpaid leave of absence to care for newborn or adopted children.
g. Family Leave
- Usually an unpaid leave of absence concerning the illness of a family member.
h. Retirement
Plan - (Differs from Social Security Benefit) Can be totally funded by the
employer and also contributed to by the employee. Regulated by Federal Law
and provides for additional payment to the employee upon retirement.
i. Tax Shelter
Plan - Some types of employment may be eligible to allow an employee to defer
Federal taxes on a portion of earnings until the employee's later years or
retirement.
j. Profit
Sharing Plan - A share of the employer's profits, given to the employee. Can
be money or share of company stock.
k. Educational
Reimbursement - If going to school benefits the employer, tuition reimbursement
can be available to the employee. Employers usually pay part of or all of
the cost based on grades achieved.
l. Sick Days
- a specified number of days off with pay for illness.
m. Income Protection
- A specified amount paid to an employee, usually weekly, when an employee is out of work for an extended
period of time.
n. Sabbatical
Leave - Usually found in the teaching profession. Allows an employee to take a leave of absence at a
reduced salary and under certain conditions. (For study, travel, or illness,
for example.)
o. Liability
Insurance Coverage - Protects an employee from lawsuits stemming from employment.
p. Mileage
and Expense Reimbursement - Some employees may incur travel expenses related
to employment. Mileage traveled by personal auto can be reimbursed as cents
per mile, all other expenses: lodging, fares, tolls, parking, etc., may be
reimbursed partially or totally.
q. Severance
Pay - When an employee leaves employment, the employer provides a sum of money
to the employee. Sometimes based on years of service or age of the employee.
r. Discounts on Goods and/or Services - Discounts on retail or wholesale prices and services available from or provided by the employer. This may range from automobile repairs to college and university tuition credit for dependents to welding services for some employees from their employers.
Employers usually consider a Cooperative Education student's employment to be part-time. Thus, not many students receive fringe benefits. An hourly minimum wage is set by law, as are certain benefits described earlier. Before beginning any employment, the student should be sure of all conditions of employment, including any fringe benefits that may be available.
MODULE 26: STUDENT ACTIVITIES
TO THE STUDENT:
After reading and studying the information sheet, complete the following
questions.
Answer the following
questions:
1. What "benefits" are mandated by
Federal or State Law?
2. If you are now employed, list the benefits you are receiving from your employer.
3. From
the benefit list provided in the information sheet, consider the benefits you
feel are most important to you. Write a persuasive essay comparing and
contrasting the benefits provided to an older worker and those you would
consider most important.
4. Describe in a complete paragraph what
Workers Compensation covers?
5.
List the benefits provided
to a working member of your family or to a close acquaintance. Be specific.
(Number of days of vacation, life insurance amount, holidays, etc.).
6. Research two different jobs in your community. Compare the two jobs, their pay and their fringe benefits. Calculate the value of the fringe benefits. Determine which position has the better financial package.
MODULE 26: STANDARDS ASSESSED IN
THIS MODULE
Pennsylvania’s
Academic Standards for Reading, Writing, Speaking and Listening (RWSL)
1.1.11. Learning
to Read Independently
E. Establish a reading vocabulary by identifying and correctly using new words acquired through the study of their relationships to other words. Use a dictionary or related reference.
1.4.11. Types of
Writing
C. Write persuasive pieces.
· Include a clearly stated position or opinion.
· Include convincing, elaborated and properly cited evidence.
· Develop reader interest.
· Anticipate and counter reader concerns and arguments.
· Include a variety of methods to advance the argument or position.
1.5.11. Quality of
Writing
A. Write with a sharp, distinct focus.
· Identify topic, task and audience.
· Establish and maintain a single point of view.
F. Edit writing using the conventions of language.
· Spell all words correctly.
· Use capital letters correctly.
· Punctuate correctly (periods, exclamation points, question marks, commas, quotation marks, apostrophes, colons, semicolons, parentheses, hyphens, brackets, ellipses).
· Use nouns, pronouns, verbs, adjectives, adverbs, conjunctions, prepositions and interjections properly.
· Use complete sentences (simple, compound, complex, declarative, interrogative, exclamatory and imperative).
| ©
2003. The Professional Personnel Development Center , Penn State University. |
| To return to the Table of Contents click here. To print copies of the CAPS materials click here. |