Medical insurance plan -
sometimes called a health insurance plan and typically includes prescription drug coverage, although the prescription drug plan may be separate from medical coverage. There are many different types of medical plans, including Fee-for-service or Indemnity plans, Health Maintenance Organization (HMO) plans, Point-of-Service (POS) plans, Preferred Provider Organization (PPO) plans, and Consumer Directed Health Plans (CDHP). These plans provide insurance coverage to reduce your out-of-pocket cost for medical care.
Dental -
the most common types of dental insurance plans are the dental PPO and dental HMO. These plans provide insurance coverage to reduce your out-of-pocket cost for dental cleanings and other basic/major care (coverage is usually limited as these plans are not intended to pay all of your dental care expenses and do not pay for cosmetic procedures)
Vision -
ancillary plan that works similarly to dental insurance plans. Provides insurance coverage to reduce your out-of-pocket cost for routine vision exams. Also provides limited coverage for lenses, contact lenses and eyeglass frames
Health Care Flexible Spending Account -
often misunderstood and difficult to comprehend by some, a HCFSA is a tax-free account administered by your employer that allows you to pay for most out-of-pocket health care expenses (e.g., medical, dental, vision expenses) with tax free-dollars. For example, instead of paying your prescription drug copays with cash from your wallet, cash that has already been taxed, you can set aside an annual amount of funds in a tax-free HCFSA to pay these expenses. The benefit of using a HCFSA is that you can use tax free money to pay for health care expenses that you have to pay for anyway--why not pay them with tax free money and save a few bucks. You have to decide how much to place into your HCFSA prior to the start of the plan year--which means you have to estimate how much you will spend for the upcoming 12 months. If you do not spend all of the funds in the account by the end of the 12 months, you forfeit (lose) the remaining funds. The HCFSA administrator or your employer will provide you with a list of health care expenses that are eligible for reimbursement from your account, as well as other account rules
Dependent Care Flexible Spending Account -
often misunderstood and difficult to comprehend by some, a DCFSA is a tax-free account administered by your employer that allows you to pay for most out-of-pocket dependent care expenses (e.g., child and elder care expenses) with tax-free dollars. For example, instead of paying your daycare provider with cash from your wallet, cash that has already been taxed, you can set aside an annual amount of funds in a tax-free DCFSA to pay these expenses. The benefit of using a DCFSA is that you can use tax-free money to pay for dependent care expenses that you have to pay for anyway--why not pay them with tax free money and save a few bucks. You have to decide how much to place into your DCFSA prior to the start of the plan year--which means you have to estimate how much you will spend for the upcoming 12 months. If you do not spend all of the funds in the account by the end of the 12 months, you forfeit (lose) the remaining funds. The DCFSA administrator or your employer will provide you with a list of dependent care expenses that are eligible for reimbursement from your account, as well as other account rules
Employee Basic Life Insurance -
basic group term life (GTL) insurance is a popular employer-provided benefit. The beneficiary of the policy, designated by the covered employee, receives a cash benefit if the covered employee dies while covered by the plan (subject to the provisions and limits of the plan). The cash benefit is usually equal to one times the employee's salary or a flat amount, such as $50,000, and the premium (cost of the coverage) is usually paid by the employer
Employee Basic AD&D -
Basic Accidental Death & Dismemberment (AD&D) insurance is usually coupled with basic life coverage. AD&D insurance provides coverage to the designated beneficiary of the covered employee if the employee dies accidentally or loses an essential body part
Employee Supplemental Life Insurance -
the employee, if offered by the employer, usually pays for this life insurance coverage. The amount of coverage the employee may purchase and other plan provisions are outlined in the policy. The employee must designate a beneficiary of the policy who is entitled to a cash benefit should the employee die while covered by the policy (subject to the provisions and limits of the plan)
Spouse/Domestic Partner Life Insurance -
this life insurance coverage, if offered by the employer, is usually paid for by the employee. The amount of coverage the employee may purchase to cover a spouse or domestic partner is usually a percentage of what the employee purchases for her/himself under an employee supplemental policy. The employee is usually automatically the beneficiary of the policy and receives the cash benefit if the spouse or domestic partner dies (subject to the provisions and limits of the plan)
Dependent Child Life Insurance -
this life insurance coverage, if offered by the employer, is usually paid for by the employee. The amount of coverage the employee may purchase to cover a dependent child is usually a flat amount (such as $10,000). The employee is usually automatically the beneficiary of the policy and receives the cash benefit if the dependent child dies (subject to the provisions and limits of the plan)
Short-term Disability (STD) -
this coverage provides you with income (a percentage of your pre-disability wages) should you become unable to work due to a non-work related injury or illness (including maternity leave)
Long-term Disability (LTD) -
this coverage provides you with income (a percentage of your pre-disability wages) should you become unable to work due to a non-work related injury or illness (including maternity leave)
Retirement plans -
the most common types of employer-based retirement plans include defined contribution (DC) plans (e.g., 401(k), 403(b), 457 plans) and defined benefit (DB) pension plans. With a DC plan, you contribute a percentage of your salary to various investment funds offered by the plan. Your contributions are pre-tax (except Roth 401(k) contributions), grow tax-deferred, and are subject to taxation at time of distribution. Your employer may make (free) matching and profit sharing contributions to your account. With a DB plan, you receive retirement benefits based on a percentage of your average salary over a period of time. Employees do not typically contribute to these plans and receive retirement benefits for life
Long Term Care insurance -
these plans allow you to pre-pay for long-term care related expenses such as in-home care
Commuter/Transit (Section 132 Plan) -
these programs allow you to pay your work-related commuter expenses (public transit train and bus fare and parking) with tax-free money. You have to pay for these expenses anyway; these programs allow you to save hundreds of dollars each year in taxes for these expenses
529 College Savings Plan -
works like a (Roth) 401(k) plan (but for higher education expenses). With these plans you can invest a substantial amount of after-tax money to an account that is professionally managed. The account pays for higher education expenses (tuition, room and board, books and fees) for yourself, a child, other family member, or a friend. The benefit is that once the money is placed in the account, it grows (federally) tax-free, and, if used to pay eligible education expenses, is distributed tax-free. There are investment risks and penalties if the funds are not used to pay qualified education expenses
Education Assistance/Tuition Reimbursement -
many employers have formal and informal education assistance/tuition reimbursement programs that will reimburse some or all of the costs of higher education expenses (degree and non-degree coursework). Sometimes, but not always, the coursework or degree program must be related to the work you perform for your employer
Other Voluntary Benefits -
(cancer, pet, auto)
Employee Assistance Program -
these confidential programs are typically paid 100% by the employer and provide counseling and referral services to employees and their family members
Credit Union -
some employers will arrange for an established credit union to provide membership benefits to employees and their family members
Wellness -
many employers offer wellness programs to employees to help them improve their health status. Some employer-based wellness programs include fitness center membership discounts, educational seminars/webinars, insurance premium discounts, etc.
Open Enrollment -
this is the annual period where employees/insurance program participants can make or change their benefit plan elections
Update Beneficiary Forms -
you should review your life and retirement plan beneficiary designations after major life events such as getting married and having a baby
W-4 -
a federal tax form that you complete to instruct your payroll department what federal income taxes to deduct. This form should be completed when you are hired and periodically (e.g., when you get married or have a child and your tax filing status changes, or you find that too much or too little federal taxes are being withheld based on your tax refund or obligation). There are also state tax forms that you may have to complete when hired
