RMI 2101 Lecture Notes - Lecture 10: Life Insurance, Adverse Selection

79 views4 pages

Document Summary

Employee benefits: any type of compensation other than direct current salary or wages, total compensation = current wages (cash) + value of ee benefits. Why ee benefits are so important: spend high $ on ee benefits ; approx 40% payroll, rate of increasing in cost is high - growing much faster than cash wages (labor strife - Why do firms offer ee benefits: attract and retain capable ees, tax advantages, productivity and better ee relations, er can take advantage of group insurance. Er pays the full cost of pla. Ee is covered without making a financial contribution. Er & ee share the cost of the plan. For an eligible ee to become participant, they must make a financial contribution: voluntary. Ee pays the entire cost of the insurance plan. Life insurance: the premium cost is not taxable to the ee, max fa the er can provide tax free is group term = ,000.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents