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