Benefits as Part of Compensation. Professional Development Series September 11, 2017 Elizabeth G. Levitzky, MBA, PhD

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1 Beefits as Part of Compesatio Professioal Developmet Series September 11, 2017 Elizabeth G. Levitzky, MBA, PhD

2 Employer Paid Beefits Cost the employer approximately 35-40% of aual compesatio Shared Costs Medical, Detal, Visio Employer Provided Ofte provide Basic Life Isurace beefit Short/Log Term Disability Coverage Paid Time Off Vacatio, Holidays, Sick, Jury Duty, Bereavemet, Materity Leave Retiremet Social Security 6.2% Medicare 1.45% Employer match to a 401(k) or 403(b) (usually requires 5 years to vest employer match) Workers Compesatio

3 Beefits Eligibility Employee Status Usually expressed i FTE (full-time equivalet, 2080 aual work hours) Full-Time Part-Time PRN whe ecessary ( pro re ata ) Cotract Accordig to the Bureau of Labor Statistics, March 2016 Retiremet Plas (private sector) available to 80% of full-time (FT) employees 37% of part-time (PT) employees Medical Care (private sector) available to 86% of FT employees 20% of PT employees Employer paid approximately 79% of the premium for sigle coverage ad 68% for family coverage for full-time employees Sick Leave (private sector) available to 76% of FT employees 30% of PT employees US Bureau of Labor Statistics (BLS) Employee Beefits Survey page is a good lauchig poit for eligibility ad participatio i differet types of employee beefits:

4 Total Compesatio Salary, Differetial or Premium pay, Sig-o Bous, Profit Sharig or other Performacebased bous, ad Beefits combied make up the total compesatio package. Cosider itagibles like eviromet, philosophy, ad growth opportuities. Make a list of areas of importace to you.

5 Categories of Beefits Time Off Isurace Plas Retiremet Plas Miscellaeous

6 Time Off Paid Time Off (PTO) Most commo of may categories are Vacatio leave ad Sick leave (paid Materity Leave package) Accumulates based o years of service ad hours worked per week Usually has a cap or maximum balace May allow a cash-i where you sell back hours for cash

7 Time Off Holidays Most employers recogize 7-8 holidays: New Years Day Mardi Gras Easter Suday Memorial Day Fourth of July Labor Day Thaksgivig Christmas Day May pay i additio to Paid Time Off or require submissio of persoal time i order to be paid

8 Time Off Bereavemet Pay Up to 3 days off with pay for immediate family; 1 day for other family members Employer defies relatioships that qualify i each category.

9 Time Off Jury Duty/Court Appearace Full day pay for a set umber of hours Some employers require you to tur over check received for service; others pay the differece.

10 Time Off Leave of Absece FMLA requires covered employers to provide up to 12 weeks of upaid, job-protected leave to eligible employees for the followig reasos: For icapacity due to pregacy, preatal medical care or child birth; To care for the employee s child after birth, or placemet for adoptio or foster care; To care for the employee s spouse, so or daughter, or paret, who has a serious health coditio; or For a serious health coditio that makes the employee uable to perform the employee s job. Employees are eligible if they have worked for a covered employer for at least oe year, for 1,250 hours over the previous 12 moths, ad if at least 50 employees are employed by the employer withi 75 miles. FMLA protects job ad some beefits but does NOT require employer to provide paid time off.

11 Isurace Plas Health Isurace Cost shared betwee employee & employer Most employers offer pre-tax premium cotributio which subjects participats to IRS rules which affect your ability to make chages outside of the defied Aual Erollmet Period Employers defie who is eligible for coverage ask what type of cofirmatio you eed so that your depedet(s) would qualify Cosideratio: Compare apples to apples premiums, copays, i-etwork/out-of-etwork providers, prescriptio drug beefits, metal health coverage

12 Isurace Plas Health Isurace Cotiued Chages uder the Affordable Healthcare Act curretly iclude: Free prevetive care whe usig i-etwork providers Childre covered util age 26 Ulimited care o more lifetime maximum coverage limits No pre-existig coditio exclusios Employees averagig 30 hours/week or more eligible

13 Isurace Beefits Detal Pla Visio Pla Normally a optioal at additioal premium Employer may cotribute to the cost of these plas.

14 Isurace Beefits Employee/Depedet Life Isurace Accidetal Death & Dismembermet Policy Short Term/Log Term Disability Policy Flexible Spedig Accouts Health Care ad/or Child Care you cotribute pre-tax dollars which reimburse eligible expeses.

15 Pay Attetio to Erollmet Waitig Periods ad Deadlies There is usually a waitig period for isurace coverage to become effective. Maximum waitig period is 90 days uder Affordable Care Act Be aware of your erollmet period; late submissios may be rejected. Kow whe your Aual Erollmet period. It s ormally the same time period each year. Usually additio of ew child or ew spouse must be submitted withi 30 days of the evet.

16 Two Beefit Household Most employers pay a portio of the employee s medical, detal, visio isurace. It may be more cost effective for each adult to carry ow coverage. Some employers will offer higher hourly pay if waivig medical coverage. Some optios may ot be available to you uder a spouse s pla such as short/log term disability.

17 Lear the Basics Whe it comes to isurace coverage, what you do t kow ca have a big impact. Kow your etwork Radiologists, Aesthesiologists, ER Physicias, ad Pathologists are ot ecessarily i the etwork just because they service a i-etwork facility. Are there restrictios? Example: Emergecy Room usage Is pre-certificatio required? May apply to brad ame medicatios as well as medical procedures Kow the process to add ew child, spouse/domestic parter to coverage.

18 Retiremet Beefits Types of Retiremet Plas iclude 401(k), 403(b), 457, Simple IRA, SEP Pla, Employee Stock Owership, Defied Beefit Pla (such as LASERS or TRSL i Louisiaa). Take advatage of ay employer match plas. Start as early as possible to save. Most couples facig 20 years of retiremet will eed $2-3 millio to live comfortably. Eve miimal ivestmet will add up sigificatly over a 30 year time spa. Whe chagig jobs, cosider rollig the retiremet fuds from oe pla to aother rather tha a cash withdrawal. A rollover is exempt from taxes ad pealties.

19 Miscellaeous Optios Educatio Beefits Educatioal assistace i the form of reimbursemet or tuitio waiver Studet Loa coversios I-house professioal developmet 529 College Savigs programs Scholarship programs for depedets

20 Miscellaeous Beefits Pre-tax premiums Cacer Policies Critical Illess Plas Ifertility beefits Hospital Discouts Log Term Care Pla help defray i home care or Nursig home costs

21 Miscellaeous Beefits Meal Discouts Fitess Ceter Parkig free or employee paid O-site bakig Malpractice Isurace Legal Assistace Policies Employee Assistace Programs Service Awards Flex schedules/work at home optios Adoptio Reimbursemet Program Child Care Discouts

22 Pay ad Taxes Pay Dates Semi-mothly - paid o 1st ad 15 th of the moth Bi-weekly paid every other week Mothly paid at ed of each moth LOOK AT YOUR PAY STUB! Employers make mistakes: Verify that taxes are beig withheld. Check for the correct premium deductios for ay/all beefits i which you are erolled.

23 Pay ad Taxes Bous checks are subject to taxes, ormally at a 25% withholdig rate. Bouses are subject to state ad federal taxes. Payout of vacatio time upo termiatio of employmet is also subject to taxes ormally at a 25% withholdig rate. If bous or vacatio payout is icluded i your regular pay, it may push you ito a higher tax bracket.

24 State & Federal Withholdig Forms The umber of exemptios you claim impacts the amout of taxes withheld Fewer exemptios = higher tax withholdig More exemptios = lower tax withholdig A married perso ca claim sigle status for tax-withholdig purposes, resultig i higher tax withholdig. Coversely, a sigle perso may claim married status for tax-withholdig purposes, resultig i lower tax withholdig. The exemptios you claim o the withholdig forms do ot have to mirror Federal Icome Tax retur.

Wages Salary Iformatio Resource: U.S. Departmet of Labor www.

25 Wages Salary Iformatio Resource: U.S. Departmet of Labor

26 Itagible Beefit Orgaizatioal Culture What is it? Shared assumptios Who we are ad what are we tryig to accomplish Belief i the values of the orgaizatio Shared values The way we do thigs Behavioral orms Commo behaviors amog the group

Summary of Benefits HAMPSHIRE COLLEGE

Summary of Benefits HAMPSHIRE COLLEGE Summary of Beefits HAMPSHIRE COLLEGE All Employees other tha Dea of Faculty ad VP of Fiace ad Admiistratio Basic Term Life, Basic Accidetal Death & Dismembermet, Optioal Term Life, Optioal Depedet Term