Compensation and Benefits
Social Security and Medicare
Social security is designed where employer and worker contribute equal dollar amount each pay period. Social security also called as Old Age, Survivors and Disability Insurance Program (OASDI) which neither is nor referred to retirement income, survivor’s benefits and disability benefits.
Medicare, 1965 provides hospital and medical insurance for elderly and people with disabilities which consists of
• Hospital insurance
• Medical insurance
• Medicare offered through private health insurance companies
• Prescription benefits
First federal unemployment insurance program states the responsibility for UI administration and distributes federal unemployment insurance funds to them. Unemployment insurance funded through employer taxes to help employees financially bridge time between positions.
Workers compensation required employers to take entire responsibility for all employee injuries, illness and deaths related to employment. Nonsubscriber plans are the companies self-fund workers compensation programs, means they pay total costs of injuries or illnesses occurs instead of paying insurance premiums.