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