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Section 2.2 Benefits
Objectives
• Identify typical employee benefi ts.
• Describe how to calculate other important employee benefi ts.
• Determine the value of a job off er by calculating employee benefi ts.
Terms
• employee
benefi ts
• fringe benefi ts
• pre-tax
deduction
• stipend
• job expense
Build Your Math Skills
Review these math skills to prepare for the lesson that follows.
1. Change percentages to decimals by moving the decimal two places to
the left. Example: 8% → 0.08
A. 12% → B. 4% →
C. 5.3% → D. 4.35% →
2. Multiply decimals. Round your answers to the nearest cent ($0.01).
Example: $13.25 × 1.25 = $16.5625 ≈ $16.56
A. $125 × 0.12 = B. $36,000 × 0.04 =
C. $235.55 × 0.075 = D. $512.50 × 0.11 =
3. Add and subtract decimals. Example: $180.05 + $75.65 – $55.30 =
$255.70 – $55.30 = $200.40
A. $247.84 + $72.48 = B. $780 – $122.78 =
C. $78.66 + $45.62 – $18.44 = D. $193.48 + $50 – $29.95 =
Employee Benefits
Many employers off er insurance, retirement plans, paid time off , and other
employee benefi ts. Employee benefi ts are anything of value that is off ered
or provided to employees in addition to wages. Common employee benefi ts
include health insurance, sick leave, and vacation time. Benefi ts may also include
things like a company-owned automobile, a health club membership, and
continuing education. Employers can off er practically anything as an employee
benefi t. Another term used to describe these benefi ts is fringe benefi ts.
Not all employers off er their employees the same benefi ts. However, many
benefi ts are generally accepted as standard for full-time employees:
• health insurance
• vision insurance
• dental insurance
• life insurance
• disability insurance