family centered/ dependent care benefits by group 8: hang pham, hongying tso, zang her, and colleen...

Family Centered/ Dependent Care

Benefits

By Group 8: Hang Pham, Hongying Tso, Zang Her, and Colleen Washington

www.brainybetty.com 2

Family-Centered Benefits

• Program designed to improve the quality of life and helping employees balance their work and family lives.


Family-Centered Benefits

• U.S. Department of Health and Human Services– 293 million people total population

• 17% children under 18 living with both parents• 6% children under 18 living with single parent• 12% elderly population

– 33 million people total population of California• 51.8% children under 18 living with working parents


Overview-Family Centered Benefits

• Adoption Benefits

• Education Benefits

• Flexible Work Benefits

• Family Leave Benefits

• Dependent Care Benefits– Elder Care– Child Care


Family Centered-Benefits Table

• Refer to Appendix A. (Table A-3)

http://www.shrm.org/hrresources/surveys_published/2002%20Benefits%20Survey.pdf




Adoption Benefits Plans

• An adoption benefits plan is a company-sponsored program that financially assists or reimburses employees for expenses related to the adoption of a child and/or provides for paid or unpaid leave for the adoptive parent employee.



• Reasons for Company to Offer Adoption Benefits– Equity– Low Cost– Good Will – Social Benefit – Acceptance By Companies



• Covered Expenses– Reimbursement for specific expenses; – Specific "set" allowance, regardless of expense;

or – Reimbursement or coverage through the

company's medical plan for medical expenses only



• Mandated States:– Connecticut– District of Columbia– Maine – Massachusetts

(female employees only)

– New Jersey– Oregon– Rhode Island– Washington– Wisconsin


• Types of Adoption Leave

– Paid Leave: authorized time off, discretionary time, annual or paid personal leave, annual or all-purpose time

– Unpaid Leave: personal leave, child care leave, personal hardship leave, or medical leave




• Typical Company Plans

Employer Some

> $4,000 for single, sibling or special needs

Paid Leave

Unpaid Leave (+ FMLA)

Resource & Referral

Campbell Soup Company x x General Mills, Inc. x Procter and Gamble x x x Wendy's International, Inc. x x x Xerox Corporation x x

Source: National Adoption Center


Education Benefits

• Education Family Benefit – Education benefits are offer by their employer to give

their employees more education or training and the employees’ family members’ opportunity to receive more or better education. From the Society for Human Resource Management (SHRM) survey in 2002, 20% of 551 companies offer scholarships for members of employee’s family, 8% for college/school selection/referral, and 5% offers financial aid for members of employee’s family


Education Benefits

• Types of education benefits– Scholarship– Educational Loan Plan– Education reimbursement/ Tuition Assistance

Program


Education Benefits

• Scholarship– Under the scholarship employee benefit,

companies will allow some part-time and all full-time workers and their families to apply for scholarships, but every company has their own qualifications.

• Raley’s- Joyce Raley Teel Scholarship• Allstate- Allstate Foundation Scholarship Program


Education Benefits

• Educational Loan Plan– For this plan companies usually will provide

loans to eligible employees to help with the cost of providing an undergraduate or graduate college education for eligible dependent children.

• Intel• MIT


Education Benefits

• Education reimbursement/ Tuition Assistance Program– United Technologies Corporation (UTC)

• This company is a motivating force behind the company’s innovative Employee Scholarship Program, which pays 100% of tuition, books and fees for UTC employees to pursue any degree they like even if it’s work-related or not at any accredited institution of higher learning.


Flexible Work Benefits

• Flexible Work Options– Alternate arrangements from traditional working

day and week. – Employees may choose a different work

schedule to meet personal or family needs. – Can be formally written into company policy or

informal agreement between employer and employee



• Common Types of Flexible Work Options– Flextime– Reduced Hours / Part-Time– Compressed Work Week– Telework / Telecommuting– Job Sharing



• Benefits for Employers

• Benefits for Employees


Family Leave Benefits

• Family Leave Benefits– Family leave benefit allows employees to take

time off from work due to illness, care of childbirth, adoption, care of a seriously ill family member and personal business.

– Paid or Unpaid Leave



• Unpaid Family Leave– Family and Medical Leave Act (FMLA) – California Family Rights Act– California State Disability Insurance (CASDI)– New California Family Temporary Disability

Insurance Benefit



• Paid Leave– Not required by law– Types of Paid Leave



• Advantage of Family Leave Benefits

• Disadvantage of Family Leave Benefits


International Maternity Leave Benefits

Country RussianFederati

on

France Germany India UK Japan Australia

US

Length of Maternity

Leave

140 days 16-26 weeks

14 weeks 12 weeks 14-18 weeks

14 weeks 1 year 12 week

s

% of Wages

Paid

100 100 100 100 90 for 6 weeks, flat rate

after

60 0 0

Provider of

Coverage

Social Security

Social Security

Social Security to

ceiling, employer

pays difference

Employer/Social

Security

Social Security

Health Insurance

N/A N/A

Source: Australian Human Rights & Equal Opportunity Commission


Dependent Care Benefits

• Since World War II, more and more women has joined the work force increasing the need for dependent care. Dependent Care is for any child under the age of 13 or any adult that is related to the employee and is incapable of self care. – Elder Care– Child Care


Elder Care Benefits

• Reasons Company offers Elder Care Benefit– reduces tardiness and absenteeism– lower training and recruitment costs– increase productivity and performance– higher employee morale and commitment– greater employee attraction and retention


Elder Care Benefits

• Common Types of Elder Care Benefits – resource and referral programs

• Local resource and referral agency

http://www.pbs.org/workfamily/help_states.html– flexible spending accounts – flexible work schedules– dependent care tax credits in addition to or in lieu of

childcare tax credits– health care and long-term care insurance for aging

relatives– in-home care evaluations provided by licensed geriatric

care managers• Ford Motor Co.

– Offer seminars on elder care

http://www.pbs.org/workfamily/help_states.html



Elder Care Benefits

• What an Employee Can Do– Be Real– Be Up Front– Be Ready– Don’t Be Afraid of the Employer’s Reaction


Elder Care Benefits

• What a Employer Can Do– Conduct a survey or focus group of employees – Provide information to employees through in-

house communication vehicles – Talk with other employers in the area


Child Care Benefits

• Why Employer should offer child care benefits?– Absenteeism of employee will decrease the company’s

performance and productivity.

• According to the Families and Work Institute survey, the most common reasons for investing in family benefits are:– To retain employees at all levels of the workforce– To help employees balance work and family life– To improve employee morale.


Child Care Benefits

• Types of Child Care Benefits

– Resource and referral services • The SHRM surveys shows that 20% of the 551

companies offer the child care referral services, making it the most offered child care benefit.

– Back-up/sick child care• Some employer will have back-up child care centers

or a third party operate one, if normal child care arrangement is messed up.


Child Care Benefits

• Off-Site Child Care– Disadvantages

• Inconvenience of commuting to child care center.• No reassurance of the quality of child care the

children are receiving.

– Advantages• Choice of choosing child care center.• Companies with flexible scheduling, telecommuting,

and mobile workers• Space Issues• By Supporting local off-site child care centers,

companies will help build the overall community economy


Child Care Benefits

• On-Site Child Care– Disadvantages

• Risk and liability issues, especially dealing with children.

– Advantages• Convenient for parents• Increase productivity, due to parents having to miss

work for children emergences• Attract quality employees and increase retention• Able to visit children on breaks and lunches• Employee loyalty


Child Care Benefits

• Taxation– The economic Recovery Tax Act of 1981

(ERTA) provided tax incentives for employer-sponsored child and dependent care benefits

• IRC 129• IRC 125


Child Care Benefits

• Internal Revenue Code Section 129– What is the section 129 Credit for dependent

care assistance and referral services?– How does the Dependent Care credit work?– What are the exclusions?


Child Care Benefits

• Internal Revenue Code Section 125– What is it and how does it affect employees?– The Dependent Care Flexible Spending Account

under IRC Section 125 allows the employee to avoid both FICA (7.65%) and Federal Income Tax (15%, 28%, 31%) on qualifying child and dependent care expenses.


Child Care Benefits

• Dependents

• Spouse/student

• Expenses

• Payments

• Provider

• Filing Status


Child Care BenefitsDependent Care Spending Account Worksheet $

1. Enter your household estimated adjusted gross income $

2. Enter the greater of your estimated itemized deductions or the following standard deductions: $

a. Married, filing joint $7,850 $

b. Married, filing separate $3,925 $

c. Head of household $6,900 $

3. Enter number of elibible exemptions(Yourself,spouse and two children would be 4) $

4. Multiply eligible exemptions by $3,300 $

5. Estimated taxable income $

6.Go to Federal Income Tax Brackets and Combined Marginal Rate Sheet: $

a. Find the Marginal tax rate for your level of taxable income (item 5) $

b. Find the Dependent Care Credit Percentage for your level of adjusted gross income (item 1) $

7. Enter estimated costs for Qualified Dependent Care Expenses $

8. Enter amount of Tax Eligible Qualified Dependent Care Expenses by: $

Enter number of eligible dependents: x $3,000 $

9. Enter the smaller of step 7, step 8 or $6,000 $

10. Calculate the benefit of the Dependent Care Credit versus Salaray Reduction by: $

a. Estimated Dependent Care Credit (multiply step 6(b) by step 9) $

b. Estimated Federal Tax Benefit of Salary Reduction (multiply step 6(a) by step 7 $

Refer to Interpretation of Worksheet Results


Child Care Benefits

• Which dependents are eligible?– Dependents under age 13 whom the

employee can claim as a dependent for income tax purposes.

– The employee’s spouse who is physically or mentally unable to care for himself/herself.

– A dependent who is physically or mentally unable to care for himself/herself, and for whom the employee can claim as an exemption for income tax purposes


Child Care Benefits

• How much can an employee withhold and how do they get reimbursed?– Single employee– Married employee– Reimbursement


Child Care Benefits

• What are the eligible Dependent Day Care expenses?– Day care provided by babysitter– Day care provided by day care center– The cost of day care provided at a summer camp– The cost of day care provided at a private school – Fees to secure dependent's place in a day care center – Any other expenses that would be considered eligible for

a dependent care credit for federal income tax purposes


Child Care Benefits

• Day care cannot be provided by:– The employee’s spouse – The other parent – The employee’s child who is under age 19 at the

end of the benefit plan year – A person whom the employee can claim on their

taxes


Benefit Wheel

• Internal Analysis– Business

Objective– TCS– HRM– Cost Issues– Wants VS Needs

• External Analysis– Taxation– Benefit

Innovations– Competition– Legal

Requirements– Inflation


Family Centered Benefit Websites

• Adoption Benefit:: http://benefits.adoption.com/ • Dependent Care Flexible Spending Account:

http://www.probenefits.com/A-Flex/Partic/DepFSA.htm#WhatCredit • Dependent Care Referral:

http://www.pbs.org/workfamily/help_states.html • Family and Medical Leave Act: http://www.dol.gov/esa/whd/fmla/• Flexible Work Options:

http://www.ccohs.ca/oshanswers/psychosocial/flexible.html• International Child Benefits: www.childpolicyintl.org• Investing in Child Care:

http://www.treas.gov/press/releases/docs/chdcare.pdf• National Child Care Information Center:

http://www.nccic.org/faqs/taxcreditsemployers.html • Society for Human Resource Management


http://www.probenefits.com/A-Flex/Partic/DepFSA.htm#WhatCredit


http://www.dol.gov/esa/whd/fmla/

http://www.ccohs.ca/oshanswers/psychosocial/flexible.html

http://www.childpolicyintl.org/

http://www.treas.gov/press/releases/docs/chdcare.pdf

http://www.nccic.org/faqs/taxcreditsemployers.html




Family Centered Benefit

Questions

?

family centered/ dependent care benefits by group 8: hang pham, hongying tso, zang her, and colleen...

Documents

benefits table

adoption benefits plan

ished2002 benefits

types of adoption

national adoption center

personal leave

child care leave

family lives