A. EMPLOYEE BENEFITS
Employee benefits refer to forms of compensation given to employees that go beyond their usual wages or salaries. These additional benefits encompass a diverse array of advantages, including health insurance, retirement plans, paid leave, disability insurance, and more. In essence, businesses have the flexibility to offer various forms of compensation to cover the costs of these benefits, and it is worth noting the potential advantage of excluding them from employees’ taxable income. Here are a few examples of commonly provided employee benefits:
1. HEALTH BENEFITS
A business can provide various types of healthcare benefits, ranging from purchasing health insurance to covering medical appointments or reimbursing out-of-pocket expenses. In this regard, the employer has several decisions to make: whether to fully or partially self-fund the plan through a Health Reimbursement Arrangement (HRA), whether to share some of the costs with employees, and whether to extend plan participation to the employee’s spouse, children, dependents, and other family members.