Employer Benefits
Know your rights when it comes to insurance provided to you by the company for which you work.
Know your rights when it comes to insurance provided to you by the company for which you work.
In order to ensure that you have insurance coverage, let’s first define an “employer”. That individual or “employing-unit” pays one or more employee(s) for some part of a day. Manufacturing companies, retail shops, hospitals, farm crew leaders and agricultural employers, and others typically bear some burden for
insurance liabilities.
Employees, inversely, perform services, part- or full-time for payment (i.e., salaries). An important exception is that of individuals who deliver work product, free from the direction of an employer. These people are considered independent contractors; and while they may be engaged in occupations related to that of the
employer’s field of business, they are independent, in the eyes of the law; and therefore, responsible for their own insurance protections.
Preeminent among employer-supported insurance is that of medical and dental coverage. Yet, the Affordable Care Act (ACA), signed into law on March 23, 2010, dramatically changed the course of health care insurance coverage in the US, causing and helping millions of individuals to purchase their own healthcare insurance.
For decades prior, employers researched policies and purchased group healthcare plans for their employees and family members. The modern skyrocketing costs of treatments, medications, and technologies have caused employers to either eliminate these plans or require significant contributions (often as a percentage of the particular policy’s premium) from employees to share the cost burden of providing medical and dental insurance.
Following healthcare coverage as the most-desired insurance coverage, employees (and new hires) are interested in disability coverage and retirement plans. Aon Consulting’s Joe Lineberry claims: “the research shows that when employees [are more productive when they] feel their benefits needs are satisfied.”
Employers, naturally, must withhold FICA taxes from employees’ paychecks and pay unemployment (state and federal) taxes – which feeds the available pool of money for unemployment claims. Some states also require contributions to short term disability programs.
Compliance with the FMLA (Federal Family and Medical Leave Act) and requirements for workers’ comp are mandatory.
Additionally, employers must provide time off to
1. be a juror
2. perform military service
3. vote in local, state and federal elections
Unless you live in Hawaii, employers don’t have to provide a retirement plan to each of its workers!
Check with your employer instead of assuming that you have coverage for the following:
Benefits made to managers must also be provided to janitorial and clerical staff members, part-timers and full-timers, alike. When an employer uses its pre-tax dollars for a single employee, those benefits must extend to all employees.
Employers understand, nonetheless that benefits cost the company an additional 30 to 40% above base-pay for the most employees. That’s why 90+ percent of employees are required to contribute toward their health insurance policies, according to William H. Mercer, and HR Management Consulting Firm.
The FMLA stipulates that 12 weeks off (unpaid leave) are required when giving/attending a birth or adopting a baby. Following this period, employers must either place the employee back in his/her original job or identify one with equivalent responsibilities. Note, you may take time off, incrementally, rather than all at once.
Different states provide a different minimum number of employees (some are 5, others are 50) for the FMLA rules to apply.
By requesting a Benefits statement (each year), you will know exactly which benefits your employer provides; and the cost for each. You may determine, along with fellow employees, that; if your office is comprised of millennials (i.e., young and single), life insurance is not a top priority. Some employers even issue surveys to rank-order benefits; then offer either a one-size-fits-all plan that appeals to the largest number of employees or a more selective approach that enables employees to pick and choose from a long list of options to which they
can individually apply their allotted dollar amount.
