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More about Employee Benefits

Employee benefits could be in the form of health and dental plans; retirement benefit plans; group-term life and long-term-care insurance plans, legal assistance plans, adoption assistance, relocation assistance, child care benefits and miscellaneous employee discounts. The miscellaneous discounts may cover movies and theme park tickets, hotels and resorts, etc.

Some of these benefits, such as accident and health plans and group-term life insurance, may be excluded from the employee's gross income and therefore exempt from federal income tax. Benefits provided by employers are normally tax-deductible to the employer and non-taxable to the employee. Among exceptions to this general rule are executive benefits like golden parachute plans.

Some employers also offer cafeteria plans in which employees can choose from a menu and level of benefits. In most cases, both the employees and the employers fund these plans.

It is essential that all parties involved in employee benefit plans comply with the laws. The Employee Retirement Income Security Act (ERISA) governs retirement plans and welfare benefit plans. ERISA encourages employers to offer employee benefit plans and minimize financial and administrative burdens. It also acts to protect the interests of employees and provide tax incentives to businesses providing employee benefit plans.

Group health plans subject to the Consolidated Omnibus Budget Reconciliation Act (COBRA) must provide notice of continuation rights to eligible former employees and beneficiaries. The eligible employee or former spouse then must decide whether or not to purchase COBRA continuation coverage within 60 days.

The term perks or perquisite is often linked to benefits of a discretionary nature. Perks are mostly provided to employees who are doing notably well and/or have seniority. Common perks include company cars, hotel stays, free refreshments, leisure activities on work time, lunch allowances and so on.

Employee Benefits provides detailed information on Employee Benefits, Employee Benefits Attorney, Employee Benefit Plans, Employee Health Benefits and more. Employee Benefits is affiliated with Discount Dental Plans.

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