This website uses cookies to ensure you have the best experience. Learn more

Employee Benefits Required By Law Essay

6705 words - 27 pages

Employee Benefits Required by Law

The legally required employee benefits constitute nearly a quarter of the benefits package that employers provide. These benefits include employer contributions to Social Security, unemployment insurance, and workers’ compensation insurance. Altogether such benefits represent about twenty-one and half percent of payroll costs.

Social Security

     Social Security is the federally administered insurance system. Under current federal laws, both employer and employee must pay into the system, and a certain percentage of the employee’s salary is paid up to a maximum limit. Social Security is mandatory for employees and employers. The most noteworthy exceptions are state and local government employees.

     The Social Security Act was passed in 1935. It provides an insurance plan designed to indemnify covered individuals against loss of earnings resulting from various causes. This loss of earnings may result from retirement, unemployment, disability, or the case of dependents, the death of the person supporting them. Social Security does not pay off except in the case where a loss of income through loss of employment actually is incurred. In order to be eligible for old age and survivors insurance (OASI) as well as disability and unemployment insurance under the Social Security Act, an individual must have been engaged in employment covered by the Act. Most employment in private enterprise, most types of self-employment, active military service after 1956 and employment in certain nonprofit organizations and governmental agencies are subject to coverage under the Act. Railroad workers and United States civil service employees who are covered by their own systems and some occupational groups, under certain conditions, are exempted form the Act. The Social Security Program is supported by means of a tax levied against an employee’s earnings which must be matched buy the employer. Self-employed persons are required to pay a tax on their earnings at a rate, which is higher than that paid by employees but less than the combined rates paid by employees and their employers.

     In order to receive old age insurance benefits, a person must have reached retirement age and be fully insured. A full-insured person is one who must have earned at least $50 in a quarter for a period of 40 quarters. It is possible for an individual who dies or becomes totally disabled at an early age to be classified as fully insured with less than 40 quarters. To receive old age insurance benefits, covered individuals must also meet the test of retirement. To meet this test, persons under 70 cannot be earning more than an established amount through gainful employment. This limitation of earnings does not include income from sources other than gainful employment such as investments or pensions. Social...

Find Another Essay On Employee Benefits Required By Law

Compensation Methods Paper

1099 words - 4 pages an organization depend on that organization. While some benefits are required by law, others are benefits that an employer puts together in a package. Benefits are not only to the advantage of an employer, but to an employee. Some employees expect certain benefits to help them feel more secure within an organization while others see benefits as a bonus to their employment. Employers offer required benefits to protect against certain laws and non

Family and Medical Leave Act Essay

939 words - 4 pages families who find themselves in one of these situations.On February 5, 1993 the Family and Medical Leave Act (FMLA) was signed into law by President Bill Clinton. Now employers must allow employees time off from work if he or she is seriously ill, has a new baby or has recently adopted a child or children, or who have to take care of sick family members without the risk of the employee losing his or her job. Sections 6381 through 6387 of title 5

Employer-Employee Relations in Northrop Grumman

1638 words - 7 pages the handbook, it is not mentioned during the hiring or new hire orientation processes. The company included the information in the handbook, which by law is all they are required to do.In conclusion, regardless of the type of relationship that an employee has with Northrop Grumman, all are treated in a fair and legal way. Northrop Grumman ensures this by adhering to all laws, guidelines, and regulations that are designed to protect the American

Non-Retirement benefits

867 words - 3 pages company's department and must be approved by the company or department supervisor except if the employee has an emergency. This does not roll over floating holidays or leave of absence. Concurrently PTO can be used with other types of leave. If all PTO hours are not been used then the company will pay for the unused hours up to the maximum accrual.Sick Leave benefit is one Non-Retirement benefit not required by federal law. A Sick Leave

Employee Relations

1715 words - 7 pages , he or she is required by law to work more than 20hours per week. The employer of an employee deducts taxes from the employee's payroll and is responsible for paying both state and federal income taxes on behalf of the employee; in addition a regular employee is provided health benefits. An employee is required to follow the employer handbook and a regular employee is required to follow a schedule that he or she employer has set. The employer

Employee Safety paper

1060 words - 4 pages million employees at 8.9 million sites.” Its mission is to prevent work-related injuries, illnesses, and deaths by issuing and enforcing rules for workplace safety and health. ( , 2007)Employer Responsibilities under OSHAEmployers are legally required to inform employees of OSHA safety and health standards that are applicable to their workplace. When employee’s job duties involve coming in contact or working closely with

Employee safety, health and welfare law paper

1092 words - 4 pages employer is required to take notes and record all injuries, date of incident and result of incident.Protection for the EmployeesThe Occupational Safety and Health Act administration provides protection for employees by enforcing civil and criminal violations of deliberate and willful violations of OSHA regulations. The law also protects employees who refuse to work due to a noticed safety violation. Employees can't be fired or harshly dealt with

Employment and Labor Laws

2408 words - 10 pages required by law to provide the employee with a letter or notice of termination before the actual date. Keating (p. 258) states that the labor laws require the employer to pay the employee the employment benefits based on the number of years of service and the kind of work. In many cases benefits are awarded to employees under both casual and permanent basis. The employer should ensure that the employers are awarded their rightful amounts since it

MGT 434 Employment Law Employer/Employee Relationship

1349 words - 5 pages relationship you have with employees, as well as progressive discipline (Falcone, 2004).ConclusionThe law governing the relationship between an employee and an employer begins when an offer for employment is made by an employer to an employee. Labor law regulates the entire relationship between employer and employee and the initial hiring process, job duties, wages, promotions, benefits, employment reviews and termination of the employment relationship

The Differences in the Federal and State Employment Laws

1123 words - 4 pages any benefits for employees, and watch every move an employee makes. There is help for the employee in the form of a few employment laws passed by federal and state governments that were designed to protect the employee. While most federal and state laws co-exist, there are some incidences where the state laws can be expanded from or stand alone from the federal mandates in order to afford even more protection.The federal government can only

Working Capital Management

1251 words - 5 pages commitment to employees by responding effectively to employee concerns.Employee Benefits and IncentivesKFF provides various benefits programs to full-time as well as part-time employees. Some of the benefits such as 401(k) Savings Plan, Health and Dental insurance, Life insurance, Educational Financial Assistance and Vacation Benefits are available to regular, full-time employees. Besides these benefits some benefits such as Child Care assistance programs

Similar Essays

Employee Benefits Required By Law Essay

3231 words - 13 pages employee,up to an established maximum. The major portion of this tax is refundedto the individual states, which operate their unemployment compensationprograms is accordance with minimum standards prescribed by the federalgovernment.While not required by law, in some industries unemployment compensation is augmented by supplemental unemployment benefits (SUBs) financed by the employer. These benefits were introduced in 1955 when the United Auto

Career Research Project On Law. Includes The History, Educaiton, Benefits, Money. By Mundeazy

1668 words - 7 pages deal with legal problems of all kinds. Lawyers advise their clients as to their rights and responsibilities under the law. Lawyers protect the interest of their client by taking legal action when the person's life or property is threatened. They also defend their client when action is taken against him or her. Most judges are lawyers. To people lawyers appear to be a guide who can lead them through a strange land. Besides training, lawyers have

Family And Medical Leave Act Essay

993 words - 4 pages return to their same position or equivalent position, similar benefits and working conditions, and same pay." An employer is allowed to periodically ask the employee on leave to report their status and intentions to return to work. An employer may terminate an employee if an employee tells the employer that they do not have intentions on returning to work and ending the employees FMLA. If an employee obtains FMLA by fraud, the employee is no

The Common Law Of Employment Essay

607 words - 3 pages The Canadian employment law system consists of three regimes: common law, employment regulation, and collective bargaining agreement (CBA). From these regimes, the common law of employment is one that was created by Judges over centuries in order to regulate the employer-employee relationship. Judges, from lower level to upper level courts have used employment contracts and torts, two tools available to them under the common law system to aid in