Intermediate Financial

Accounting
Mr. Iftakhar

Submitted by
M.Ali Hassnain
BAF-FA17-023
 Employee benefits
Employee benefits are the additional benefits than the actual pay that are given to
the organization’s employee. These benefits are of different types : TADA for
travel, health insurance, advance salary loan, retirement bonus, pension etc.

Employees all over the world are given many forms of benefits at the organization
that they are working for. This is mostly because of the time that these
organizations have invested in the conductance of different Human Resource
experiments and new theories about work force. The Law of the states all around
the world also recognizes these benefits and organizations also follow these laws.

Medical Insurance

Medical insurance of the company enables an employee to have his medical needs
met without worrying of the bill. Coverage can sometimes include the employee's
family (dependents). Employees sometimes have to pay a minimal amount every
month for these services. Often employees pay a percentage of the monthly cost.
These benefits help the employee to save from the initial pay or to address other
expenses from the pay.

Disability Insurance

Disability Insurance replaces all or part of the salary that is lost when a specialist
can't work their activity on account of sickness or damage. This benefit isn't
regularly advertised. There are two primary kinds of this insurance:

 Short-term disability insurance begins right away or within a few weeks of

an accident, illness, or some other disability. For example, someone hurt in a
car accident would be offered a few paid weeks to recover.

 Long-term disability insurance provides benefits to an employee when a

long-term or permanent illness, injury, or disability leaves the individual
unable to perform his or her job. For example, an employee with spinal
injuries could be entitled to long-term disability benefits until retirement age.
Provident Fund

Provident fund is set up at the time the employee join in on the organization and it
goes on until the employee leaves the organization or retires from the organization.
In this fund, a fixed ratio of the employee’s salary is deposited into it every month.
The employer also submits the same amount of money as the employee into his
provident fund. This amount is then invested. At the time of retirement or leaving
the organization, the whole amount along the investment interest is given to the
employee for his well bieng.

Paid Time Off

Also known as paid vacations, this is the way the organization relaxes its employee
at the same time they pay him. This way the employee can really relax as he is not
worried about the office or that his vacation is going to cost a part of his pay.

Fringe Benefits

Fringe benefits are a variety of non-cash payments are used to attract and retain
talented employees. They may include tuition assistance, flexible medical or child-
care spending accounts (pre-tax accounts to pay qualified expenses), other child-
care benefits, and non-production bonuses (bonuses not tied to performance).