Thursday, March 02, 2006

Employers are Stupid

Employers are stupid.

They give away money like it was water. (On second thought, given the predilection toward bottled water at $5+ per gallon that phrase probably should be retired). They complain that employees don’t appreciate their job or benefits and then wonder why.

The hidden paycheck reveals both the problem and the solution.

Most employees take things for granted and never appreciate the “free” benefits associated with their job.

When they are hurt at work, their employer pays for their medical care, including rehab and training as needed. They also send them a weekly check.

When they retire, at least a portion of their Social Security and Medicare benefits are provided at no charge to them.

When they are laid off, they may qualify to receive a check for 6 months, sometimes longer, until they find replacement employment.

If they have health or dental insurance through their employer, a significant portion of the cost of coverage may be provided by their employer.

So how much is this hidden paycheck worth?

In some cases 20% of more of their paycheck is hidden from view. Employers pay for half the FICA tax due, all of the Workers Comp premiums, all of the FUTA & SUTA taxes and anywhere from 75% to 100% of the cost of health insurance for the employee.

Usually, the only time employees become aware of how much the employer provides in the hidden paycheck is when they leave employment and receive their COBRA notification. That is when sticker shock sets in.

Health insurance provided by the employer is usually the most expensive coverage you can find. It is also unappreciated.


Because employers are stupid.
blog comments powered by Disqus