| Meant to increase the economic security of | | | | is essential that all parties involved in employee |
| employees, employee benefits are non-wage | | | | benefit plans comply with the laws. The Employee |
| compensations in addition to normal wages or | | | | Retirement Income Security Act (ERISA) governs |
| salaries. Employee benefits could be in the form | | | | retirement plans and welfare benefit plans. ERISA |
| of health and dental plans; retirement benefit | | | | encourages employers to offer employee benefit |
| plans; group-term life and long-term-care insurance | | | | plans and minimize financial and administrative |
| plans, legal assistance plans, adoption assistance, | | | | burdens. It also acts to protect the interests of |
| relocation assistance, child care benefits and | | | | employees and provide tax incentives to |
| miscellaneous employee discounts. The | | | | businesses providing employee benefit plans.Group |
| miscellaneous discounts may cover movies and | | | | health plans subject to the Consolidated Omnibus |
| theme park tickets, hotels and resorts, etc.Some | | | | Budget Reconciliation Act (COBRA) must provide |
| of these benefits, such as accident and health | | | | notice of continuation rights to eligible former |
| plans and group-term life insurance, may be | | | | employees and beneficiaries. The eligible employee |
| excluded from the employee's gross income and | | | | or former spouse then must decide whether or |
| therefore exempt from federal income tax. | | | | not to purchase COBRA continuation coverage |
| Benefits provided by employers are normally | | | | within 60 days.The term perks or perquisite is |
| tax-deductible to the employer and non-taxable to | | | | often linked to benefits of a discretionary nature. |
| the employee. Among exceptions to this general | | | | Perks are mostly provided to employees who are |
| rule are executive benefits like golden parachute | | | | doing notably well and/or have seniority. Common |
| plans.Some employers also offer cafeteria plans in | | | | perks include company cars, hotel stays, free |
| which employees can choose from a menu and | | | | refreshments, leisure activities on work time, |
| level of benefits. In most cases, both the | | | | lunch allowances and so on. |
| employees and the employers fund these plans.It | | | | |