Topic 13: Mandated Benefits Compulsory Flashcards
(30 cards)
What is State Unemployment Insurance
Weekly cash benefit during periods of involuntary unemployment through no fault of your own
What Disqualifies A Person From SUI
Getting fired, quitting, retiring, being a student
Purpose of State Unemployment Insurance
Acts as a safety net for unemployed workers
Stabilizes economy during recession
Encourages employers to stabilize employment
- Fees for yo-yoing employees
Eligibility Requirements for SUI
Earn qualifying wages
Be able to work and be available to work
Actively seek work
Satisfy a waiting period
SUI Financing
Primarily employer payroll taxes
Employee tax in some states
- If not enough, bailed out by Congress
Economic Issues of SUI
Inadequate benefits
States inadequately funded
Waste, fraud, admin burdens
What Does Worker’s Comp Cover?
Covers occupational disease and work-related accidents arising out of or in the course of employment
State by state basis
Workers Comp Agreement Between EE and ER
Prior to WC injured EEs had to sue ER to gain compensation
ERs could successfully deny legitimate claims
Post WC
ER is held absolutely liable for injuries
EE cannot sue ER
ER pays in some cases where there is no negligence
EE receives swift and certain payments
How Are Income Benefit Amounts Determined
Usually in terms of a % of lost wages
Four Classes of Disability
Permanent Total
Permanent Partial
Temporary Total
Temporary Partial
How Employers Can Comply With WC Law
Purchase WC insurance policy from private insurer
Self insurance in some cases
Purchase from state fund of Federal Agency
Issues Concerning WC
Many suspicious claims
Occupational disease (stress) has a long latency period and is difficult to prove cause
Medical costs are very high
Many employees still sue (often after being fired)
Social Security Enacted In…
1935
Medicare Enacted In…
1965
Social Security Is The Largest…
Government program in the world
O.A.S.D.H.I
Old Age Survivors Disability Health Insurance
Social Security Eligibility
Must earn minimum amount in at least 40 quarters to be fully insured (approximately $1200 a quarter)
Old Age (Social Security)
Retirement benefits
Amount based on earnings
Normal retirement age is 65-67 depending on DOB
For us its around 70 to get same benefits as 20 years
Survivors (Social Security)
Coverage for the survivor of a fully insured worker - spouse or dependent
Disability (Social Security)
Insured is disabled
Award could be more if spouse or dependents involved
Definition is strict (not as liberal as regular disability policies)
Health Insurance (Social Security) Parts….
Medicare Part A, B, D
Medicare Part A
Hospital Benefits
- Coverage is free with a deductible of approximately $2000
Inpatient
Post hospital care
Hospice care
Medicare Part B
Medical Benefits
- Monthly premium of approximately $105 a month
Covers most expenses except Routine physicals Routine eye, foot, ear care Immunizations RX Hospital
Medicare Part D
Prescriptions
Effective in 2006
Participant must enroll and pay a monthly premium and a portion of each prescription. Also must have part A or B to be eligible
Doughnut Hole (Coverage Gap)
