COMMERCE 2BC3 Lecture Notes - Sick Leave, Flexible Spending Account, Tax Rate
7 Apr 2014
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Introduction: employee benefits are part of an organization"s total compensation package and include both mandatory government-sponsored benefits and voluntary benefits such as life and disability insurance, extended health coverage, additional vacation pay, and a range of other options. There are three unique aspects to benefits: 1. There is a question of legal compliance there is lots of regulation in terms of benefits: 2. They are so common now that they have become institutionalized: 3. They are very complex when a benefits package is made. Reasons for benefits growth: benefits have steadily became more popular over the years, 1. After wwii there was a labour market shortage which meant employers had to find more ways to attract and retain employees: 2. Tax rates are not as heavy on benefits the marginal tax rate refers to the percentage of an additional dollar of earnings that goes to taxes: 3.
