Chapter_13-Employee_Benefits

Chapter_13-Employee_Benefits - Chapter 13 Benefits Options...

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Benefits Options Legally Required Benefits - Benefits required by statutory law (worker’s compensation, social security and unemployment compensation) Workers’ Compensation - covers injuries and diseases that arise out of, and while in the course of, employment. Benefits are given for 1. Permanent total disability and temporary total disability 2. Permanent partial disability – loss of use of a body member 3. Survivor benefits for fatal injuries 4. Medical expenses 5. Rehabilitation Temporary total disability is both the most frequent type of claim and one of the two most costly (along with permanent partial disability) Amount of total compensation is based on fixed Disability payments are often tied to the employee’s “second injury fund” – funds that relieve an employer’s liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone. Workers’ compensation is covered by state, not federal laws Social Security - introduced in 1937 - every American worker is covered - the Social Security Act has been designed and amended to provide a foundation for basic security for American workers and their families - Monies to pay these benefits comes form the social security contribution made by employees, their employers and self-employed people during working years. - Is retirement income to employees Congress currently debating different reform plans falling into four categories (1) increasing payroll taxes (2) decreasing benefits (3) using general revenues (4) having soc. Sec. go straight to your own individual accounts for your own personal retirement Benefits under Soc. Sec . (1) old age or disability benefits (2) benefits for dependents of retired or disabled workers (3) benefits for surviving family members of a deceased worker (4) lump-sum death payments Amount receives vary To quality for these benefits, a worker must work in covered employment and earn a specified amount of money (about $780 today) for each quarter-year of coverage. Unemployment Insurance Financing - In majority of states, unemployment compensation paid out to eligible worker is financed exclusively by employers that pay federal and state unemployment insurance tax. 6.2% of the first $7,000 earned by each worker. Coverage - All workers except a few agricultural and domestic workers are currently covered by unemployment insurance (UI) laws. 97% of the workforce Eligibility requirements to receive benefits 1. You must meet the state requirements for wages earned or time worked during an established (one year) period of time referred to as a “base period”. 2.
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Chapter_13-Employee_Benefits - Chapter 13 Benefits Options...

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