Paid time off is another popular employee benefit that most employers offer their employees. Here the amount of paid time varies based on the amount of hours an employee works, how long they have worked for the company, and what their job is. Some employers base the amount earned on a standard lump sum number of paid hours that an employee accumulates during a year. Others base the amount on a formula that bases the amount of time off earned on the number of hours worked. Employees can use their accumulated paid time off for personal days, vacation, or sick leave.
Disability Insurance
Disability insurance is not the most common of employee benefits, and in most cases is probably offered as an option insurance that employees can purchase. There are two types of disability insurance available, short-term disability and long-term disability insurance.
Short-term disability insurance is intended to cover employees who are temporarily unable to perform the tasks associated with their job. Benefits begin on the first or eighth day of inability to work and are paid for a maximum of 26 weeks. The amount paid to the employee is based on their salary and the number of normal hours worked in a week and usually range between 60 and 80% of the employee’s salary.
Long-term disability insurance is intended to cover employees who are incapacitated for longer than 26 weeks. Benefits offered by this insurance begin paying out after short-term disability insurance ceases at 26 weeks and continues as long as the person is unable to work, or until they reach a normal retirement age. The amount of money paid out is based, like short-term disability insurance, on the amount of money the employee received in wages while they were working, and is usually between 60 and 80% of their normal salary. In cases that long-term disability is needed, Social Security disability is also often implemented as a device to offset employer provided long-term disability benefits.