While the benefits are usually taxable, they are generally taxed at a lower rate than cash directly. Also, employers can seldom write off the benefits in a way that they can not write from the wages of employees.
Companies benefit packages typically cost less than their actual value. This is because companies with many employees will be buying benefits in bulk and thus get a better offer. individual employees often favour being remunerated by the benefits rather than fees, because the service will cost them more to buy individually.
Some examples of types of benefits are:
Health Insurance:
The company has been offering health insurance as part of their aid package because almost everyone needs it, and it was quite costly to buy independently but can be bought relatively inexpensive when purchased as part of a group plan. This benefits the company because of the healthy employee is more productive than employees who are sick.
Sick Leave Days / Holidays:
Paid time off is easy for companies to offer because it comes in the form of normal wages of employees, minus a few days of productivity. The time off has been shown in some studies to increase productivity and reduce the cost of the company, because of employee illness and stress have a cost for the company. For example, employees who do not pay sick days will often choose to come to work sick, their illness may be spread through the building, resulting in a large loss of productivity.
Housing:
It sometimes benefits for executives and other workers with scarce, in-demand skills that must be moved to take up a job. Providing some form of housing, both in the form of corporate apartments or rental voucher has to ease the transition of employees and make them more committed to the company. Also, agricultural producers sometimes would hire seasonal migrant workers and those in boarding houses that they own or lease out so that the remains of their labour supply in place throughout the season.
Children:
With many women choose to have children and a career, the company has responded by offering the child in place.
Subject Replacement:
To maintain the workforce up to date on the latest advances in their field, several companies offer tuition reimbursement.
Profit-Sharing:
Share options and other profit-sharing scheme encourages employees to invest their best work to the company to ensure that their shares would be more profitable. It can be one of the more lucrative employee benefits, as shares of companies that are not good for future employees can sometimes be two or three grades.
