Running Head: EMPLOYEE BENEFITS

Employee Benefits
[Name of the Writer]
[Name of the Institution]

Table of Contents
Introduction ..................................................................................................................................... 1
Employee Benefits .......................................................................................................................... 1
Benefit Basics ................................................................................................................................. 1
Family and Medical Leave Act ....................................................................................................... 2
Reasons for giving Employee Benefits ........................................................................................... 2
Narrow scope amendments by IASB to IAS-19 (Employee Benefits) ........................................... 3
References ....................................................................................................................................... 4

Introduction
In the paper, definition of Employee Benefits will be discussed. The examples and scenarios
that are related to the employee benefits will be explained in detail and the role of these benefits
will be elaborated. Employee benefits can be defined as a package offered to a candidate in
exchange of his service. It is every employees right to ask from the organization regarding their
employee benefits as many small business firms expects that their firm is too small to offer
benefits. But it is important to notice that without the boost one cannot incline the morale of its
employee. The benefits are they key for long term prosperity of the organization.

Employee Benefits
Employee benefits are related to a philosophy called Penny Wise Philosophy which is
responsible for a business to prosper. Employees feel that there are specific benefits deserving
employees must have. This thought was given by Mr. Silverstein, Founder of a small firm whose
business was advisory services. One of the researches predicts that employees are more satisfied
when their benefits are fulfilled and they tend to be more productive.

Benefit Basics
The law for employee rights requires employers to provide employee benefits to employees. The
following are the basic benefits mandated by law for every employee deserves includes
unemployment, overtime, minimum wage rate, FMLA (Family & Medical Leave Act), disability
& labor compensation. Nowadays many firms provide paid or unpaid holidays or time-off
compensations. Its not necessary that the employer facilitates every employee with health &

Lease Accounting

retirement plans, free vision or dental plans, insurance plans, paid holidays or even sick leaves.
But noticeably,

Family and Medical Leave Act

The benefit grants workers to take off for 12 weeks (unpaid) for child birth or adoption of a child
or serious health injury or disease caused to the employee or his immediate family. After the
completion of vacation the employee must be in the same job.

Reasons for giving Employee Benefits

Employee benefits are very essential both for the employee and employer. Some of the reasons for
providing employee benefits are mentioned below:

Organizations Appeal: An employee is attracted to join a particular organization whose

employer has been offering numerous employee benefits. This created and enhances the appeal
to join and serve for the company. For a company, they acquire dedicated, skilled and
experienced employees that would strengthen companys base.
Turnover Rate: By awarding employee benefits an organization is able to minimize their
turnover rate. Employees will be more serious and dedicated towards their job and this would
progress the firms processes.
Boosted Morale: By granting benefits, employees urge to serve better and this also boost up their
morale and they are more loyal to the company.

Lease Accounting

Healthy Workers: If the organizations give benefits like medical aids for dental or health of
employees, the workers live a better and healthier life. Also this would not affect the workers
productivity.
Job Performance: By offering benefits, employees feel that an organization cares about them and
in result they give a better job performance.

Narrow scope amendments by IASB to IAS-19 (Employee Benefits)

IASB (International Accounting Standards Board) has proposed narrow-scope amendments to
IAS 19 in relation with Employee Benefits. This is entitled for some specific employee benefits
like employee contributions. These amendments are implied to employee contributions to
defined employee benefit plans. The core objective of the narrow scope amendments is to make
the accounting of contributions easier which is free from the number of served years. These
contributions are calculated in accordance with fixed salary percentage. This issue came from the
submissions made to IFRS Interpretations Committee which has recommended the IASB to
amend the benefit plans.

Lease Accounting

References
BusinessBee, (2013). Top 5 Reasons to Offer Employee Benefits - BusinessBee. [online]
Available

at:

http://www.businessbee.com/resources/operations/workforce-

management/top-5-reasons-to-offer-employee-benefits/ [Accessed 3 Dec. 2014].

Doyle, (2014). Learn Which Job Benefits Bosses Are Required to Give You. [online] About.
Available

at:

http://jobsearch.about.com/od/employeebenefits/a/typesofemployeebenefits.htm
[Accessed 3 Dec. 2014].
Entrepreneur,

(2014).

The

Basics

of

Employee

Benefits.

[online]

Available

at:

http://www.entrepreneur.com/article/80158 [Accessed 3 Dec. 2014].

Ifrs.org, (2014). IFRS - IASB publishes narrow-scope amendments to IAS 19 Employee
Benefits. [online] Available at: http://www.ifrs.org/Alerts/ProjectUpdate/Pages/IASBpublishes-narrow-scope-amendments-to-IAS-19-Employee-Benefits-November2013.aspx [Accessed 3 Dec. 2014].