Benefits And Benefits Of Employee Benefits

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Employee Benefits Cost Employees dedicate a huge part of their time working for a company. A typical full time employee that works 40 hours a week spends about 200 hours per month only at work. This is not including time spent on driving to work and back home. More importantly employees are valuable assets to companies; they bring in skills, experience and get the job done. Therefore as forms of payment other than monetary compensations companies offer a variety of benefits intended to help promote financial security and raise living standards. Some of these benefits are statutory and some are voluntary. Statutory benefits include Social Security, unemployment, worker’s compensation and family and medical leave. Most benefits such as pensions and health insurance are provided voluntarily; there are also specialized benefits programs such as ongoing education and training, childcare, long-term care and legal assistance. While this favorable for employees it is a huge financial burden on the companies. Health benefits or insurance coverage being one of the most valuable and expensive benefit employers especially small businesses are increasingly struggling to fund it. I am currently taking a Healthcare Accounting class and one of our recent lectures was on reading and analyzing financial statements. One thing I noticed when looking at Income Statements of various healthcare organizations is that employee salaries, wages and benefits expenses are the biggest expenditure.
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