Understanding Payroll Benefits In Your Business

Understanding payroll benefits

Introduction

Upon employment, the employees are entitled to a pay at the agreed time mostly end of every month. With this comes with a range of payroll benefits that are a composition of amounts withheld from the employee salary and a contribution made by the employers.

The amounts withheld are then forwarded to various bodies to cater for collective needs of the employees that include healthcare, retirement, childcare, tax, and insurance among others. This is done in accordance to stipulated laws of the state alongside the company’s policies.

Social security

At the time of paying the salaries, the employer is required to withhold a specific amount of the employee’s salary for contribution to the social security. The employer is also required to make an additional amount that is equivalent to the amount withheld from the employee.

The amount contributed for social security is based on either a percentage of the employee’s salary or a specified amount. This is then remitted to a body recognized by law where the employee will be entitled to the amounts upon attaining the age of retirement. This amount can also be accessed in the event of terminal illnesses or disability that may necessitate permanent removal from any form of employment.

payroll benefits

Insurance

Industry requirements put employers under obligation to insure their employees. This is however dependent on the duties and responsibilities of the employee within the organization. Other than this medical insurance for the employees that includes a range of common ailments, disability and life insurance is also provided. This falls within the duty of the employer to offer the same for its employees on the basis of its employment packages.

Paid holidays and vacations

Holidays, vacations and sick leaves are also among the payroll benefits that accrue for the employees. This includes offering of paid holidays trips as well as salaries for the period even without having the employee at work. This should as well include paid sick and maternity leaves where the employee should be accorded adequate time to get better before resuming duty.

Conclusion

The range of payroll benefits available within organization varies. Whereas there are benefits stipulated by the law as rights of the employees, others are included in the employment packages of the organization. For this reason there is need for employers to adequately inform their employees on the benefits they are entitled to and how the same affects the agreed salaries. This should be alongside following the laws set by the state in regard to labor laws.

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