Flexible Benefits Programs

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Running Head: FLEXIBLE BENEFITS PROGRAMS 1

Flexible Benefits Programs

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Institutional Affiliation

FLEXIBLE BENEFITS PROGRAMS 2

Flexible benefit programs allow employees of a certain organization to choose benefits

one desire from several available options. Some of these programs may include health insurance,

contributions and spending accounts the employees can use to cater for medical healthcare

services and other costs. These flexible plans help both small and large employers in sharing

cover costs with the employees. It is a plan that offers staff the chance to choose between

different benefits such as life insurance, cash, vacations, health insurance, child care and

retirement plans. Although a specific common benefit is required, an employee can choose on

how the remaining dollars are allocated to each benefit from the total amount given by the

employer (McConnell, 2013).

The most common flexible benefit programs used by organizations to attract and keep

their workforce include; cafeteria plans, flexible spending accounts and transportation plans. The

cafeteria benefit plan allows the employees to have the choice of receiving particular nontaxable

benefits such as cash or other taxable benefits. Under this plan, the employer can only offer few

benefits like life and health insurance, both dental and disability covers, elderly care and day

care. The funding in most cases comes from the employer and sometimes from the employees or

both. The employer also provides spending credits, which are used by the employees to choose

benefits from the several available options (McConnell, 2013).

Another benefit plan an organization can use to attract and maintain workforce is the

flexible spending account. This account is sometimes referred to as reimbursement account.

These accounts are almost similar to a bank saving accounts. In this account, the employees

deposit money throughout the year, the funds are used to cater for the employee’s health care and

other dependent expenses. Employers also contribute to these accounts under obligation to do so.

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Flexible Benefits Programs Name Institutional Affiliation Flexible benefit programs allow employees of a certain organization to choose benefits one desire from several available options. Some of these programs may include health insurance, contributions and spending accounts the employees can use to cater for medical healthcare services and other costs. These flexible plans help both small and large employers in sharing cover costs with the employees. It is a plan that offers staff the chance to choose between different benefits such as life insurance, cash, vacations, health insurance, child care and retirement plans. Although a specific common benefit is required, an employee can choose on how the remaining dollars are allocated to each benefit from the total amount given by the employer (McConnell, 2013). The most common flexible benefit programs used by organizations to attract and keep their workforce include; cafeteria plans, flexible spending accounts and transportation plans. The cafeteria benefit plan allows the employees to have the choice of receiving particular nontaxable benefits such as cash or other taxable benefits. Under this plan, the employer can only offer few benefits like life and health insurance, both dental and disability covers, elderly care and day care. The funding in most cases comes from the employer and sometimes from the employees or both. The employer also provides spending credits, which are used by the employees to choose benefits ...
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