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PRDV204: Payroll Applications

Unit 7: Benefits—Insurance, Retirement, and Flexible Plans  

As we continue our study of benefits, it is important to note that the only benefits an employer is required to offer an employee are workers compensation, social security tax, family and medical leave, unemployment insurance, and in some cases COBRA benefits.  If an employer offers benefits outside of the aforementioned list of benefits, these are identified as voluntary.  This section of the course provides you with a closer look at benefits, and bolsters your understanding of what is applicable, and to whom it applies.

Unit 7 Time Advisory
This unit should take you approximately 3 hours to complete.

☐    Subunit 7.1: 90 minutes

☐    Subunit 7.2: 55 minutes

☐    Subunit 7.3: 5 minutes

☐    Subunit 7.4: 30 minutes

Unit7 Learning Outcomes
Upon successful completion of this unit, the student will be able to:
- Explain the basics of retirement, insurance, and flexible-plan benefits.  

7.1 Understanding Benefits and Insurance   - Reading: Thethrivingsmallbusiness.com’s "Employee Benefits Required by Law" Link: Thethrivingsmallbusiness.com’s "Employee Benefits Required by Law" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on which benefits are required by law and which ones employers offer at their discretion.     
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 5 minutes to complete.    

7.1.1 Employer Health Insurance Obligation   - Reading: Insuranceproviders.com’s "What are the employer obligations when providing health insurance to employees?" Link: Insuranceproviders.com’s "What are the employer obligations when providing health insurance to employees?" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on the obligation an employer has to an employee with regards to health insurance.  You should pay careful attention to the legislation mentioned in this part of the course.    
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 5 minutes to complete.    

7.1.2 Types of Health Insurance   - Reading: Payrollonabudget.com’s "Health Insurance" Link: Payrollonabudget.com’s "Health Insurance" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will learn about different types of health insurance plans.  Pay careful attention to the section that discusses tax treatment of benefits.  There is also a mathematical example to assist you in understanding the calculations associated with insurance.     
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 15 minutes to complete.

7.1.3 Should You Offer Dental Insurance   - Reading: Ehow.com’s "Pros & Cons of Dental Insurance" Link: Ehow.com’s "Pros & Cons of Dental Insurance" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will get information to assist you in understanding the basis an employee should use for determining if they need dental insurance.  An employer can also use this information to support their understanding of how significant of a benefit dental insurance is to their employees.      
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 5 minutes to complete.    

7.1.4 The History of Social Security   - Reading: SSA.gov’s "Social Security Frequently Asked Questions" Link: SSA.gov’s "Social Security Frequently Asked Questions" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will engage in a question-and-answer session regarding the origins of social security.  There are a number of hyperlinks embedded in this reading and you will have to click on each link individually to obtain the support information.       
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 60 minutes to complete.   
 

7.2 Payroll of Deferred Compensation   7.2.1 Deferred Compensation: Good or Bad Idea?   - Reading: NYTimes.com: Ron Lieber’s "The Hidden Peril of Deferred-Compensation Plans" Link: NYTimes.com: Ron Lieber’s "The Hidden Peril of Deferred-Compensation Plans" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on how deferred compensation plans work, if an employee should participate, and what happens if a company goes bankrupt. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 10 minutes to complete.    

7.2.2 Deferred Compensation Series   - Web Media: YouTube: Financial Group Channel’s "Deferred Compensation Series" Link: YouTube: Financial Group Channel’s "Deferred Compensation Series" (YouTube)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight on deferred compensation plans and why an employer may or may not choose to offer such a plan.  There are a total of six videos in this series.  Please watch all six. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This web media should take you approximately 45 minutes to complete.   
 

7.3 Flexible Benefits Plan   - Reading: Flexbene.com’s "What Is a Flex Plan All About" Link: Flexbene.com’s "What Is a Flex Plan All About" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight to support your understanding of flexible benefits plans.  There is an example that is included that illustrates the impact a flexible benefits plan has on net take-home pay for an employee.  Also, at the bottom of this resource is a hyperlink entitled “Frequently Asked Questions (FAQ's).”  Please click on this hyperlink and read the questions and answers. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 5 minutes to complete.    

7.4 Calculating Benefits, Payroll Taxes, and Insurance   7.4.1 Calculating Benefits, Payroll Taxes, and Insurance   7.4.2 Calculating Medical Benefits   - Reading: Chron.com: Natalie Grace’s "How to Calculate Medical Deductions in Payroll" Link: Chron.com: Natalie Grace’s "How to Calculate Medical Deductions in Payroll" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will gain insight to support your understanding of how to approach the calculation of medical benefits.  You will gain insight on whether deductions are pre-tax or after tax.  This information facilitates the completion of the deduction transaction as impacted by section 125 of the internal revenue code. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 10 minutes to complete.