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LSDefine

Simple English definitions for legal terms

employee benefit plan

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A quick definition of employee benefit plan:

An employee benefit plan is a written plan that a company creates for its employees, officers, and advisers. It can include things like retirement savings, stock options, bonuses, and health care benefits. There are different types of plans, such as defined-benefit plans that provide a set amount of retirement income, and defined-contribution plans where the employee and employer contribute to an individual account. Some plans, like 401(k) plans, allow employees to choose how their money is invested. The goal of these plans is to provide benefits to employees beyond their regular salary.

A more thorough explanation:

An employee benefit plan is a written plan that provides various benefits to employees, officers, and advisers of a company. These benefits can include stock-purchase, savings, option, bonus, stock-appreciation, profit-sharing, thrift, incentive, pension, or similar plans. The term also includes employee-welfare benefit plans, employee-pension benefit plans, or a combination of both. However, plans in which no employees are participants are excluded.

  • Defined-benefit plan: This plan provides retirement benefits to employees based on a formula that includes factors such as years of service and compensation. If the trust funding the plan lacks sufficient assets to pay the promised benefits, the employer is required to cover the shortfall.
  • Defined-contribution plan: This plan allows each participant to have a separate account funded by the employee's and employer's contributions. The benefits are based solely on what has accumulated in the participant's account.
  • 401(k) plan: This retirement and savings plan allows an employee to elect to have a portion of their pretax salary contributed to a defined contribution plan. Employers often match all or part of the employee's contributions.
  • Employee-stock-ownership plan (ESOP): This plan invests primarily in the employer's stock and receives special tax benefits. It can be used as a corporate finance tool and allows employees to purchase company stock.
  • Simplified employee pension plan (SEP): This plan is attractive to small employers because it is much easier to administer than a 401(k) plan and gives the employer complete discretion on whether to make an annual contribution.

These examples illustrate the different types of employee benefit plans that companies can offer to their employees. These plans can provide retirement benefits, savings opportunities, and other incentives to attract and retain employees. Employers may also receive tax benefits for offering these plans.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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