Presentation on theme: "Family Centered/ Dependent Care Benefits By Group 8: Hang Pham, Hongying Tso, Zang Her, and Colleen Washington."— Presentation transcript:
Family Centered/ Dependent Care Benefits By Group 8: Hang Pham, Hongying Tso, Zang Her, and Colleen Washington
www.brainybetty.com2 Family-Centered Benefits Program designed to improve the quality of life and helping employees balance their work and family lives.
www.brainybetty.com3 Family-Centered Benefits U.S. Department of Health and Human Services –293 million people total population 17% children under 18 living with both parents 6% children under 18 living with single parent 12% elderly population –33 million people total population of California 51.8% children under 18 living with working parents
www.brainybetty.com4 Overview-Family Centered Benefits Adoption Benefits Education Benefits Flexible Work Benefits Family Leave Benefits Dependent Care Benefits –Elder Care –Child Care
www.brainybetty.com5 Family Centered-Benefits Table Refer to Appendix A. (Table A-3) http://www.shrm.org/hrresources/surveys_publ ished/2002%20Benefits%20Survey.pdf
www.brainybetty.com6 Adoption Benefits Plans An adoption benefits plan is a company- sponsored program that financially assists or reimburses employees for expenses related to the adoption of a child and/or provides for paid or unpaid leave for the adoptive parent employee.
www.brainybetty.com7 Adoption Benefits Plans Reasons for Company to Offer Adoption Benefits –Equity –Low Cost –Good Will –Social Benefit –Acceptance By Companies
www.brainybetty.com8 Adoption Benefits Plans Covered Expenses –Reimbursement for specific expenses; –Specific "set" allowance, regardless of expense; or –Reimbursement or coverage through the company's medical plan for medical expenses only
www.brainybetty.com9 Adoption Benefits Plans Mandated States: –Connecticut –District of Columbia –Maine –Massachusetts (female employees only) –New Jersey –Oregon –Rhode Island –Washington –Wisconsin
www.brainybetty.com10 Types of Adoption Leave –Paid Leave: authorized time off, discretionary time, annual or paid personal leave, annual or all-purpose time –Unpaid Leave: personal leave, child care leave, personal hardship leave, or medical leave Adoption Benefits Plans
www.brainybetty.com11 Adoption Benefits Plans Typical Company Plans Source: National Adoption Center
www.brainybetty.com12 Education Benefits Education Family Benefit –Education benefits are offer by their employer to give their employees more education or training and the employees’ family members’ opportunity to receive more or better education. From the Society for Human Resource Management (SHRM) survey in 2002, 20% of 551 companies offer scholarships for members of employee’s family, 8% for college/school selection/referral, and 5% offers financial aid for members of employee’s family
www.brainybetty.com13 Education Benefits Types of education benefits –Scholarship –Educational Loan Plan –Education reimbursement/ Tuition Assistance Program
www.brainybetty.com14 Education Benefits Scholarship –Under the scholarship employee benefit, companies will allow some part-time and all full- time workers and their families to apply for scholarships, but every company has their own qualifications. Raley’s- Joyce Raley Teel Scholarship Allstate- Allstate Foundation Scholarship Program
www.brainybetty.com15 Education Benefits Educational Loan Plan –For this plan companies usually will provide loans to eligible employees to help with the cost of providing an undergraduate or graduate college education for eligible dependent children. Intel MIT
www.brainybetty.com16 Education Benefits Education reimbursement/ Tuition Assistance Program –United Technologies Corporation (UTC) This company is a motivating force behind the company’s innovative Employee Scholarship Program, which pays 100% of tuition, books and fees for UTC employees to pursue any degree they like even if it’s work-related or not at any accredited institution of higher learning.
www.brainybetty.com17 Flexible Work Benefits Flexible Work Options – Alternate arrangements from traditional working day and week. – Employees may choose a different work schedule to meet personal or family needs. –Can be formally written into company policy or informal agreement between employer and employee
www.brainybetty.com18 Flexible Work Benefits Common Types of Flexible Work Options –Flextime –Reduced Hours / Part-Time –Compressed Work Week –Telework / Telecommuting –Job Sharing
www.brainybetty.com19 Flexible Work Benefits Benefits for Employers Benefits for Employees
www.brainybetty.com20 Family Leave Benefits –Family leave benefit allows employees to take time off from work due to illness, care of childbirth, adoption, care of a seriously ill family member and personal business. –Paid or Unpaid Leave
www.brainybetty.com21 Family Leave Benefits Unpaid Family Leave –Family and Medical Leave Act (FMLA) –California Family Rights Act –California State Disability Insurance (CASDI) –New California Family Temporary Disability Insurance Benefit
www.brainybetty.com22 Family Leave Benefits Paid Leave –Not required by law –Types of Paid Leave
www.brainybetty.com23 Family Leave Benefits Advantage of Family Leave Benefits Disadvantage of Family Leave Benefits
www.brainybetty.com24 International Maternity Leave Benefits CountryRussian Federati on FranceGermanyIndiaUKJapanAustra lia US Length of Maternity Leave 140 days16-26 weeks 14 weeks12 weeks14-18 weeks 14 weeks1 year12 week s % of Wages Paid 100 90 for 6 weeks, flat rate after 6000 Provider of Coverage Social Security Social Security to ceiling, employer pays difference Employer/ Social Security Health Insurance N/A Source: Australian Human Rights & Equal Opportunity Commission
www.brainybetty.com25 Dependent Care Benefits Since World War II, more and more women has joined the work force increasing the need for dependent care. Dependent Care is for any child under the age of 13 or any adult that is related to the employee and is incapable of self care. –Elder Care –Child Care
www.brainybetty.com26 Elder Care Benefits Reasons Company offers Elder Care Benefit –reduces tardiness and absenteeism –lower training and recruitment costs –increase productivity and performance –higher employee morale and commitment –greater employee attraction and retention
www.brainybetty.com27 Elder Care Benefits Common Types of Elder Care Benefits –resource and referral programs Local resource and referral agency http://www.pbs.org/workfamily/help_states.html –flexible spending accounts –flexible work schedules –dependent care tax credits in addition to or in lieu of childcare tax credits –health care and long-term care insurance for aging relatives –in-home care evaluations provided by licensed geriatric care managers Ford Motor Co. –Offer seminars on elder care
www.brainybetty.com28 Elder Care Benefits What an Employee Can Do –Be Real –Be Up Front –Be Ready –Don’t Be Afraid of the Employer’s Reaction
www.brainybetty.com29 Elder Care Benefits What a Employer Can Do –Conduct a survey or focus group of employees –Provide information to employees through in- house communication vehicles –Talk with other employers in the area
www.brainybetty.com30 Child Care Benefits Why Employer should offer child care benefits? –Absenteeism of employee will decrease the company’s performance and productivity. According to the Families and Work Institute survey, the most common reasons for investing in family benefits are: –To retain employees at all levels of the workforce –To help employees balance work and family life –To improve employee morale.
www.brainybetty.com31 Child Care Benefits Types of Child Care Benefits –Resource and referral services The SHRM surveys shows that 20% of the 551 companies offer the child care referral services, making it the most offered child care benefit. –Back-up/sick child care Some employer will have back-up child care centers or a third party operate one, if normal child care arrangement is messed up.
www.brainybetty.com32 Child Care Benefits Off-Site Child Care –Disadvantages Inconvenience of commuting to child care center. No reassurance of the quality of child care the children are receiving. –Advantages Choice of choosing child care center. Companies with flexible scheduling, telecommuting, and mobile workers Space Issues By Supporting local off-site child care centers, companies will help build the overall community economy
www.brainybetty.com33 Child Care Benefits On-Site Child Care –Disadvantages Risk and liability issues, especially dealing with children. –Advantages Convenient for parents Increase productivity, due to parents having to miss work for children emergences Attract quality employees and increase retention Able to visit children on breaks and lunches Employee loyalty
www.brainybetty.com34 Child Care Benefits Taxation –The economic Recovery Tax Act of 1981 (ERTA) provided tax incentives for employer- sponsored child and dependent care benefits IRC 129 IRC 125
www.brainybetty.com35 Child Care Benefits Internal Revenue Code Section 129 –What is the section 129 Credit for dependent care assistance and referral services? –How does the Dependent Care credit work? –What are the exclusions?
www.brainybetty.com36 Child Care Benefits Internal Revenue Code Section 125 –What is it and how does it affect employees? –The Dependent Care Flexible Spending Account under IRC Section 125 allows the employee to avoid both FICA (7.65%) and Federal Income Tax (15%, 28%, 31%) on qualifying child and dependent care expenses.
www.brainybetty.com37 Child Care Benefits Dependents Spouse/student Expenses Payments Provider Filing Status
www.brainybetty.com39 Child Care Benefits Which dependents are eligible? –Dependents under age 13 whom the employee can claim as a dependent for income tax purposes. –The employee’s spouse who is physically or mentally unable to care for himself/herself. –A dependent who is physically or mentally unable to care for himself/herself, and for whom the employee can claim as an exemption for income tax purposes
www.brainybetty.com40 Child Care Benefits How much can an employee withhold and how do they get reimbursed? –Single employee –Married employee –Reimbursement
www.brainybetty.com41 Child Care Benefits What are the eligible Dependent Day Care expenses? –Day care provided by babysitter –Day care provided by day care center –The cost of day care provided at a summer camp –The cost of day care provided at a private school –Fees to secure dependent's place in a day care center –Any other expenses that would be considered eligible for a dependent care credit for federal income tax purposes
www.brainybetty.com42 Child Care Benefits Day care cannot be provided by: –The employee’s spouse –The other parent –The employee’s child who is under age 19 at the end of the benefit plan year –A person whom the employee can claim on their taxes
www.brainybetty.com44 Family Centered Benefit Websites Adoption Benefit:: http://benefits.adoption.com/ Dependent Care Flexible Spending Account: http://www.probenefits.com/A-Flex/Partic/DepFSA.htm#WhatCredit http://www.probenefits.com/A-Flex/Partic/DepFSA.htm#WhatCredit Dependent Care Referral: http://www.pbs.org/workfamily/help_states.html http://www.pbs.org/workfamily/help_states.html Family and Medical Leave Act: http://www.dol.gov/esa/whd/fmla/http://www.dol.gov/esa/whd/fmla/ Flexible Work Options: http://www.ccohs.ca/oshanswers/psychosocial/flexible.html http://www.ccohs.ca/oshanswers/psychosocial/flexible.html International Child Benefits: www.childpolicyintl.orgwww.childpolicyintl.org Investing in Child Care: http://www.treas.gov/press/releases/docs/chdcare.pdf http://www.treas.gov/press/releases/docs/chdcare.pdf National Child Care Information Center: http://www.nccic.org/faqs/taxcreditsemployers.html http://www.nccic.org/faqs/taxcreditsemployers.html Society for Human Resource Management http://www.shrm.org/hrresources/surveys_published/2002%20Benefits %20Survey.pdf http://www.shrm.org/hrresources/surveys_published/2002%20Benefits %20Survey.pdf
www.brainybetty.com45 Family Centered Benefit Questions ?