As an employee it is important to know what amount of money is going to be deducted from your salary. The amount of money deducted has different uses. In this article we shall look at different ways in which the money is put to use.
one of the important uses of the money is to cover for health insurance. This applies if an employer provides health insurance for the employee. an employer should provide their employees with health insurance. The employee has to pay a certain amount of money every month or annually to cater for the insurance. Therefore in case of an emergency, the employee does not have to pay cash at a health center. The health insurance takes care of everything.
Another payroll deduction is short-term and long-term disability. This insurance ensures that in case the employee is rendered disable whether permanently or temporarily they are able to get a small amount of fee. This insurance coverage provides financial security for the employees in case they end up in this situation.
Life insurance is another deduction. Basic life insurance is offered to employees in most areas of work. With this insurance the family of the employee is guaranteed of financial stability and security in case of the death. This ensures that their dependents can fend for themselves for a certain period of time. The plan offered does not last for a long period of time because it is just a basic premium plan.
Another deduction is supplemental life insurance. This is in case the employee does not feel satisfied by the life insurance plan offered by the employer period an employee. Employees can decide to add any amount of money from their paychecks to get a for this insurance. It ensures that it stays for a longer period of time.
Furthermore another deduction is the dependent life insurance. This insurance protects you from the loss of a dependent, spouse or child. Upon the loss of any of the specified people, the insurance ensures that the bereaved can financially cope without their loved ones. This is convenient especially if the spouse of the employee was a breadwinner.
If this happens to the employee they can get a small amount of money while they are in this state.
Also, another payroll deduction if pension. This cover is specified for retired employees who cannot work anymore. The money is paid to senior citizens so that they can find for themselves even without a salary. It is paid from the payroll deductions monthly or annually. Most employees get their pension paid with interest.