DQ7-2
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DQ7-2.docxDQ 7-2 Responses
1,
The legally required benefits that all employers must provide are unemployment insurance, workman’s compensation, family medical leave act, social security and Medicare taxes and disability insurance. The minimum healthcare benefit under Obamacare is also a mandatory benefit but that only affect employers with more than 50 full time employees. The U.S. Bureau of Labor and Statistics believes that these benefits provide workers and their families with income and medical care, help with economic hardships as a result of loss of work or disability. These benefits also help with workplace injuries and sickness (Paycheck, 2014).
The one benefit that can be waived is the minimum health care benefits if the employer has over 50 employees. If they do not they need to provide insurance for them. The one benefits that should be a legally required benefits is paid time off. Every employee should be able to receive some sort of paid leave. We work in a country that works a lot. Workers should have mandatory time they need to take off. The average America who receives paid time off has taken half of that in the last 12 month. Employees do not take time off based off fear of being behind or thinking no one else can do their job. 21 % of people feel they cannot be disconnected (Fottrell, 2017). This is sad and needs to change. People need the mental break and need to recharge in order to be the best employees they can be.
Fottrell, Q. (2017, May 28). The Sad Reason Half Americans Don’t Take Their Paid Vacation. Markettrend. Retrieved from: https://www.marketwatch.com/story/55-of-american-workers-dont-take-all-their-paid-vacation-2016-06-15
Paycheck website. (2014, ugust 24). What Basic Benefits Must a Company Provide Employees. Paycheck. Retrieved from:https://www.paychex.com/articles/employee-benefits/employee-benefits-a-company-must-provide
2.
Employers are required to offer certain benefits to their employees by law. Although, the law doesn’t require certain benefits, in all honesty these benefits should be mandated. For example, retirement plans, life insurance, health insurance, dental insurance and paid leave. All other employee benefits are considered to be non-required benefits, with the exception of minimum required benefits under Obamacare. This only affects companies that have 50 or more full-time employees or the equivalent in part-time employees. Health insurance must provide basic preventative care, but may carry high out of pocket maximums (Taylor, 2018). I think that health insurance should become a required benefit for all employers to offer to their staff even if they have less than 50 employees. We are currently living in a world where anything can happen. For instance when we decide to expand our families by having children, these children need to be secured with good health benefits otherwise risks are on a high. Granted if a family is living in poverty, the government will provide them with the necessary health insurance but this usually isn’t the case for most. It is unfortunate to have uninsured families today and a constant struggle that many have to face. The following are examples of benefits required by law.
Benefits Required by Law
1. Workers Compensation offers insurance benefits to employees who become ill or are injured at work. This insurance is different in every state and is dictated at the state level. In addition, some states require employers to purchase disability insurance.
2. Unemployment Insurance provides compensation to employees who lose their job for no fault of their own. It is different in every state and is mandated at the state level.
3. Social Security Taxes are required to be paid on employees. The current rate for SS tax is 6.2%, which both the employee and the employer pays, plus an additional 1.45% for Medicare tax.
4. Family and Medical Leave is a benefit that is sometimes confusing for employees. What the Family and Medical Leave (FMLA) require is for the employer to provide 12 weeks of unpaid time off to employees during a 12-month period of time. The leave protects the employee from losing their job to care for themselves or an immediate family member, including the birth of a child, placement for adoption or foster care of a child. The leave is unpaid unless the employer offers paid leave as part of an optional benefits package.
5. COBRA Benefits are required for employers with 20 or more employees who are subject to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA allows the employee to maintain their insurance coverage at the employer’s group rates for a period of up to 18 months. This coverage applies to former employees, former employee spouses, dependent children and retirees (Lotich, 2015).
Although, these benefits are required by law employees sometimes fear they will lose their job in the event they claim one of these. When I was employed as an Assistant Teacher two years ago, I didn't have health insurance and although we had 5 sick days I wasn't made aware until a month before the school year ended. I had a family emergency that required me to take time off but I was afraid to do so. When I spoke to the HR specialist, she explained I can take upto 5 days off due to the circumstances. If this didn't happen to me, I would not have known. I am thousand percent sure, this is very common with others working for other institutes or companies. Therefore, it is essential that employers inform their staff accordingly and that the appropriate staff is available to explain in the event one is in need.
Reference:
Lotich, P. (2015). Thriving Small Business. 5 Employee Benefits Required by Law. Retrieved by
https://thethrivingsmallbusiness.com/employee-benefits/
Taylor, T. (2018). The Balance Careers. Required vs. Non-Required Employee Benefits for US Businesses. Retrieved from
3What are legally required benefits and why are they required by law? Can any of these benefits be waived? Provide an example. Provide one additional benefit that should be made into a legally required benefit.
Corporations, whether large or small, have legal liability to provide required benefits to all employees. These benefits include, but are not limited to the following:
· Disability Insurance
· Family and Medical Leave
· Paid Time off and Other Leave Benefits
· Social Security and Medicare Taxes
· Unemployment Insurance
· Health Insurance (Taylor, 2018)
Disability Insurance, both short-term and long-term, are required benefits which are paid by both the employer and the employee, both parties only partially pay; however, additional plan can be generated through a payroll deduction and offered to the employee.
Family and Medical Leave is a required program by employer to employees. This particular program covers individuals for a 12-week period as job protection for any unpaid leave due to certain requirements for the program. “During the leave, all group employee benefits are continued. If the employee chooses not to return to work at the conclusion of the FMLA leave, he or she may still be eligible for coverage and continued health care benefits under COBRA statutes. The company must employ at least 50 people, or be a public organization.” (Taylor, 2018)
FMLA does have restrictions verifying the employee must be able to “care for the birth, foster care placement, or adoption of a child. The employee must care for immediate family member suffering from a serious illness or injury. The employee must need care for his or her own serious health condition, and the employee must be caring for an injured or sick active military member.” (Taylor, 2018)
FMLA does indicate the employee must contact the employer in advance before the FMLA package is approved; however, if the state of emergency is in order these considerations are waived. Men and women are both eligible for the FMLA program.
Paid time off and other leave benefits are also a required standard of law for employees. In this case it is standard practice for an employer to offer at least a few both paid and unpaid leave days to benefit the employee; however, most paid time off is normally vacation, sick, personal leave, and jury duty. Where some business do other funeral or bereavement leave, it is not offered through the State of Illinois, government. In the case of a funeral or death in the family, the employee is required to take their own time death of a family member.
Social Security and Medicare Taxes are another required benefit for employees paid by employers. In fact, the employers are required to match the same rate paid by employees the monies paid into Social Security.
Unemployment Insurance are paid by companies; this particular insurance is paid in taxes to ensure employees are covered if unemployment is utilized, regardless if the employee is full-time or part-time.
Workman’s Compensation yet another required benefit by companies to pay employees. According to https://www.hiscox.com/small-business-insurance/workers-compensation-insurance , this insurance helps to protect employees from work-related accidents, illness, and even death.
According to Taylor, 2018, companies are not required to pay for a retirement savings plan, life insurance, vision insurance or dental care insurance; however, this should be a paid service by all companies. This type of coverage should be offered in the compensation benefit package to all employees. If these were a part of the services offered through the company employees would more likely extend their services through the same company. All employees are seeking the preeminent compensation package for themselves and their families.
I also believe that a daycare reimbursement program should be offered by employees, especially, for those individuals who are required to pay a daycare provider to even go to work. I believe more companies would have more individuals applying for positions if they knew daycare was even partially reimbursed. They would also maintain the mentality of continuing employment through companies who did offer such reimbursement. The State of Illinois, fortunately, offers this particular service; however, it is a program which employees must opt into and the reimbursement amount is only $5000.00 annually but it is still accommodating.
References:
Taylor, T. (2018). Required Vs. Non-required Employee Benefits for US Businesses: Understanding Mandatory and Competitive Employee Benefits. Retrieved from https://www.thebalancecareers.com/required-vs-non-required-employee-benefits-for-us-businesses-4117334
Workers Compensation Insurance. Retrieved on September, 3rd, 2018 from https://www.hiscox.com/small-business-insurance/workers-compensation-insurance?medium=tsa&_vsrefdom=2018071302&msclkid=e04c451f1c1510fa6dd01e923197e485&utm_source=bing&utm_medium=cpc&utm_campaign=Workers%20Comp%3ESearch%3EUSA&utm_term=+workmen%20+compensation&utm_content=WC:%20General&gclid=CMGJvZ3vnt0CFcUogQodEW0GtQ&gclsrc=ds&dclid=CLuey53vnt0CFcvcwAod9aAH4w
