Lecture 17 Other Nonretirement BenefitsPayments for Time Not WorkedFamily and Medical Leave ActEmployee AwardsOther Extra Payments to EmployeesNo-Additional Cost Services and Employee DiscountsDependent-Care AssistanceAdoption AssistanceWellness ProgramsEmployee-Assistance ProgramsFinancial and Retirement PlanningMiscellaneous BenefitsLecture 17Other Nonretirement Benefits•Payments for time not worked•Employee awards•Other extra payments to employees•No-additional-cost services and employee discounts•Dependent Care•Adoption assistance•Wellness programs•Employee assistance programs•Financial and retirement planning•Miscellaneous benefitsPayments for Time Not Worked•Vacations–Service or position–Waiting periods–Additional days–Unused days•Holidays–Scheduled–Floating•Personal time off with pay–Reserve/National guard duty–Voting/jury duty–Death in family–Sabbatical leaves•Supplemental unemployment benefit plansFamily and Medical Leave Act•12 weeks within any 12 month period•No obligation to continue employee’s pay•Most benefits do not have to be continued–Pension eligibility/participation service–Continue health insurance•Employee must make required contributions•Employer continues contributions–Can recover if employee does not return to work•Old job or equivalent job given upon returnEmployee Awards•Suggestion awards–Taxed as income•Service awards–De minimis not taxed–Higher values not taxed income if qualified plan awards•Cannot exceed $1,600 per year•Permanent, written program that does not discriminate•Productivity and Safety Awards–Productivity awards are taxable income–Safety awards are taxable for professional, administrative, mangerial or clerical employees–Qualified plan awards for other employeesOther Extra Payments to Employees•Educational assistance–$5,250 received on a tax-free basis•Graduate courses excluded–May receive a tax deduction for taxable amounts –Cannot be discriminatory•Moving-Expense Reimbursement –Taxable income but may receive a tax deductionNo-Additional Cost Services and Employee Discounts•Conditions for a tax-free benefit–Nondiscriminatory–No significant additional cost or lost revenue–Line of business the employee works in–Additional conditions for discounts•Real estate and personal investment property discounts and discounted loan rates excluded•Limit on size of discount–Merchandise discount <= gross profit margin –Services discount <= 20% of cost to nonemployeesDependent-Care Assistance•Child-care and eldercare benefits•Tax-free benefit up to statutory limits–$5,000 single or married filing jointly–$2,500 married filing separately•Benefits for care for a qualifying individual–Under 13 and allowed a tax deduction–Other dependent who is mentally or physically incapable of caring for him/herself•HCEs taxed if benefits are discriminatoryAdoption Assistance•May reimburse for expenses–Legal and adoption agency fees–Medical expenses–Foster care–Transportation expenses–Additional expenses for foreign adoptions•Up to $5,000 provided as a tax-free benefit –Adjusted gross income must be <= $75,000–Phased out for higher incomesWellness Programs•Medical screening programs•Lifestyle management programs–Smoking-cessation programs–Fitness programs–Weight-reduction and nutrition programs–Stress-management programs•Not taxable income if related to a medical condition, de minimis, or for on-sight athletic facilitiesEmployee-Assistance Programs•Help with certain personal problems–Treatment for drug or alcohol abuse–Counseling for mental, stress, family or marital problems–Financial, legal and tax advice–Crisis intervention•Medical or legal plans pay covered expenses•Non-medical employer payments taxableFinancial and Retirement Planning•Financial planning for executives–Compensation, estate, investment and insurance planning, and preparation of tax returns–Typically on an individual basis–Taxable income for employee•Preretirement Counseling–Group Meetings•Financial planning•Living arrangements, health and free time issues–Not taxable as long as in a group settingMiscellaneous Benefits•Transportation/free parking–$65/mo. for transit passes or commuter vehicle and $175/mo. for qualified parking–Can choose benefit or cash, cash is taxable•Company cars–Value for personal use is taxable •Subsidized eating facilities–Provided on business premises–Furnished for the convenience of the