What you need to know about workplace benefits
Common workplace benefits that most large employers offer their employees include health insurance and a retirement plan. Most employers also contribute money toward these benefits. But there also are other benefits a business might offer to attract employees.
What they are?
Work benefits generally are anything that can help employees financially and with their quality of life. They often include different types of insurance, paid time off and a retirement plan, such as a pension or 401(k).
Who are they for?
Such benefits usually are reserved for full-time permanent employees, although they may be available in full or in part to temporary and part-time employees. There may be exclusion and/or vesting periods in which employees cannot access the benefits in full or in part until they have been employed for a certain period of time.
How do they work?
Most workplace benefits, if they aren’t paid for by the employer, can be paid for by payroll deduction. Whatever the employee owes for the benefit will be deducted weekly, monthly or bi-monthly — whatever the schedule for employee payment is. When it is time to file a claim, you do so just as you would if you if it were a benefit you were paying for on your own privately.
Types of coverage
The most common types of work benefits are health insurance, retirement plans and various forms of paid leave. These usually are partially or fully paid by the employer. There also are what are called voluntary benefits, that are usually mostly or fully paid for by the employee. These often include universal life insurance, accident and critical illness insurance, disability insurance and long-term care insurance.
The biggest advantage of benefits at work is that the employer often pays at least some of the cost. The advantage with voluntary benefits is that even though you pay for them yourself, you get group rates, so they are likely cheaper.