Employment Resources

Disability insurance is one benefit your employer may offer. You may have access to short-term or temporary disability coverage that replaces a portion of your income in certain cases. Know the difference as you understand your benefits package.

What is Short-Term Disability Insurance?

You may become injured or ill outside of work and need time off from your job to get medical treatment or focus on recovery. After you use all your sick or vacation days, short-term disability can pay a portion of your income.

Some employers provide short-term disability as part of the employee benefits package or you can purchase a policy from a private insurance company. It will not cover injuries or illnesses that happen on the job. There’s usually a two-week waiting period before the benefits kicks in, and coverage only replaces your income for three, six, 12 or 24 months depending on the plan you have.

What is Temporary Disability Insurance?

Like short-term disability insurance, temporary disability insurance replaces part of your income if you suffer an injury or illness that’s not work related. It usually covers extended work absences you take because of pregnancy or childbirth.

This insurance usually pays 60 percent of your salary for up to six months. You may access temporary disability insurance before your short-term disability insurance kicks in. If your illness lasts a while, you could be eligible for long-term disability benefits that assist you financially as you recover.

Should you Buy Short-Term or Temporary Coverage?

The choice on which disability coverage to buy is yours alone. It’s obviously a wise choice if your employer provides it for you as part of your benefits package since you’ll receive a free or reduced policy. Disability insurance is also a good idea if you don’t have an emergency savings of nine to 12 months. Since it can help you pay your living expenses and bills, it gives you peace of mind while you’re off work.

When deciding whether to buy short-term or temporary coverage, weigh the pros and cons of each type. Research premiums, too. While it’s a smart investment, you have to be able to afford it.

Losing work time after an accident or illness affects your ability to pay bills and care for your family. Check with your Human Resources manager to see if your employer offers short-term or temporary disability insurance. It’s valuable coverage that provides some financial assistance as you recover from an injury or illness.

A felon is someone who commits a serious crime like homicide, larceny, rape, arson, burglary or another violent or non-violent offense. Despite their crime, felons can get jobs. In fact, employers must follow certain laws when interviewing and hiring felons.

Background Checks

Most employers perform background checks on all job applicants. These checks ensure that the applicant is honest when sharing skills, education and work history.

During background checks, employers cannot automatically exclude candidates who have criminal records, including records with misdemeanors, arrests and convictions that do or do not have relevance for the job. That discrimination falls under Title VII of the Civil Rights Act.

Employment Interviews and Hiring Practices

The Equal Employment Opportunity Commission’s (EEOC) Enforcement Guidance on the Consideration of Arrest and Conviction Records outlines additional guidelines employers must follow. They state that:

• Employment policies may not automatically exclude anyone from employment
• Job applications may not inquire about convictions except those that may interfere with the person’s ability to do the job
• Employers may not exclude job applicants based on their criminal record, especially if the criminal offense is not related to the person’s job
• Other factors relative to the conviction should be considered, including facts or circumstances that relate to the offense or conduct, the number of offenses, the individual’s age at convictions, rehabilitation efforts, the applicant’s length and consistency of employment before and after offense and references
• All applicants should have a chance to explain their criminal records
• Employers should regularly investigate their background screening practices to ensure no groups are adversely impacted

Recent court cases filed by the EEOC clarify these rules. In all three of these cases, employers learned that blanket prohibitions against criminals are unlawful.

1. Auto maker BMW refused facility access to any employees or contractors with certain criminal convictions. The broad policy is discriminatory because it’s not specific enough.

1. At Dollar General, an applicant was terminated when she was falsely charged with a conviction. Even though she assured her manager of the wrongful charge, the company did not reverse its decision.

1. The Waldon et al v. Cincinnati Public Schools addresses two employees who were fired unlawfully after criminal background checks.

Benefits of Hiring Felons

Employers who hire rehabilitated felons do receive several benefits. Felons can be valuable employees who are skilled at their jobs, able to work as a team and capable of advancing through the company. Also, a Work Opportunity Tax Credit Program from the Department of Labor gives organizations tax breaks when they hire criminals within one year of their conviction or prison release.

Felons are protected from discrimination. Every employer and employee should understand the law to ensure the workplace welcomes everyone.

Your 401(k) account will finance your retirement. You may wish to access to those funds now, though. Learn the pros and cons of borrowing from your 401(k) as you decide if this financial move is smart or not.

401(K) Borrowing Pros

As long as you remain with your current employer, you can borrow from your 401(k). Typically, you can withdraw the lesser of $50,000 or half of your vested amount. Here are the pros to taking out a 401(k) loan.

• Use the money for almost any purpose, including to repay debt, pay off medical debt, send a child to college, buy a car or purchase a house
• Borrow regardless of your credit score
• No need  to complete a loan application
• Repay the loan with automatic paycheck deductions
• Take up to five years to repay the loan with no penalty for early repayment

401(K) Borrowing Cons

While the 401(k) money is yours to use, taking money from the account today reduces the interest your account earns and ultimately affects the amount of money that’s available for you during your retirement. Consider the cons of borrowing from your 401(k) before you take out this loan.

• Pay double taxes since you pay interest on the loan with after-tax money and will owe taxes on the money when you withdraw it during retirement
• You’ll owe a 10 percent penalty tax if the full amount is not repaid before you leave your current employer and  you are younger than 59.5 years old or if you do not meet the loan repayment agreement
• The amount you borrow is no longer protected from creditors or bankruptcy
• High interest rate

How to Borrow From Your 401(k)

Before you take a 401(k) loan, determine the purpose for the loan and if you can successfully repay it. It could hurt you if your finances aren’t in order.

Next, talk to your Human Resources manager. Some companies and plans do not allow 401(k) loans and others will allow you to take money out of your 401(k) for hardship purposes such as repaying medical expenses or keeping your house out of foreclosure. If you can take this loan, complete the necessary paperwork, which may include your HR manager’s signature. You’ll also need to make arrangements to repay the funds. In many cases, you receive the loan money in a few weeks.

Know the pros and cons of borrowing from your 401(k) as you can make an informed decision. It may be a good move for you. For more details, talk to your Human Resources manager or financial advisor.

Millions of people use Facebook to connect with family and friends. It’s also a popular outlet for venting about frustrations on the job. Before you post something bad about your boss, though, consider whether or not you could be fired for what you post.

Know the National Labor Relations Act

According to the National Labor Relations Act, you have the right as an employee to discuss details about your conditions of employment or wages with someone else if you are trying to improve conditions on the job. Your solo rants or gripes about your job, boss, or co-workers are not protected by law, though.

As an example, say your boss is a bully and negatively affects several people in your office. In this case, you may be able to complain online and be protected since your post is considered a collective complaint. You cannot legally post a complaint if you are the only person he or she bullies, however.

Understand that Your Employment is At Will

In many cases, you are employed at will. That means your employer can fire you for a variety of reasons as long as those reasons are not discriminatory. Because being employed is a privilege, carefully consider all your social media posts. You’re usually better off approaching your boss in person with important issues that should be addressed rather than venting over social media.

Read the Social Media Policy

Many large employers have social media policies in place that offer details about what employees can and cannot post. It may outline the consequences you face, including termination, if you use social media to complain about something at work. Check with your Human Resources department for more information about the social media policy at your job.

Consider Your Reputation

While your complaint against your boss may be legitimate, realize that it could also affect your reputation. Do you really want to be known as the person at work who always posts negative comments online? Your actions today could affect your position and your ability to get a good professional recommendation in the future.

That’s why you should do your best to keep your negative comments to yourself or share them offline with only a few close friends. You don’t want to jeopardize your reputation because you’re upset about something your boss says or does.

It’s always a good idea to use discretion when you discuss your boss or job on social media. Depending on what you post, you could be fired or face other consequences. Check out the details of your employer’s policies before you post negative opinions and comments online.

When you think of abuse, you may think only of physical actions. Mental abuse is also a reality, however. If it happens in your workplace, you will need to take several steps to address it as you create a healthy work environment.

Types of Mental Abuse

Workplace mental abuse shows up in many forms. The abuse can be overt and outward or manifest itself in less obvious ways, and it can be directed to co-workers, subordinates or clients. It may also permeate the entire workplace culture or only show up in certain situations. Examples include:

• Swearing
• Screaming
• Angry rants
• Ignoring
• Interrupting
• Isolating
• Failing to provide relevant information
• Sabotaging work
• Stealing credit for work
• Directing rude or belligerent comments toward someone
• Dismissing legitimate complaints from victims
• Rewarding bullies with better assignments, promotions or pay raises

Causes of Mental Abuse

In your workplace, you may see several causes of mental abuse. Significant changes to business operations could prompt co-workers to become mentally abusive, especially if roles are not discussed and agreed upon. Inadequate communication also causes problems and can prompt someone to cope in an unhealthy manner. Difficult working conditions with high work volumes or short staff may also trigger mental abuse episodes as overworked employees cope in the wrong way.

Effects of Mental Abuse

When mental abuse is present in your workplace, the company, employees and clients suffer. The victims will experience increased stress, lack of motivation and productivity, physical illness and absenteeism.  Managers spend valuable time documenting the abuse, comforting the victim and disciplining the abuser instead of doing their work. Abuse can even affect the company’s bottom line as valuable resources are diverted away from projects and toward crisis management, productivity decreases and turnover increases.

Preventing Mental Abuse

Mental abuse is never okay, but it does happen. Your company should be consistent and aggressive in handling the abuse to protect you and others.

First, make sure there’s a zero tolerance policy. It should outline unacceptable behavior and include the requirements for documenting, disciplining and handling abusive situations.

You’ll also want to make sure employees are adequately trained to handle abusive situations. They should be able to recognize abuse and know the guidelines for reporting it.

Everyone should feel comfortable discussing and reporting mental abuse, also. Managers ideally should have an open door policy that allows employees and clients to report improper behavior.

You can’t always prevent mental abuse in your workplace, but you can address it properly and stop it from continuing. If your company does not have a mental abuse prevention and handling process in place, ask your Human Resources department to create one and promote a healthy work environment for everyone.

Your salary is one of the first things you want to know when you start a new job. Unfortunately, you might be in for a big surprise when you open your first paycheck thanks to mandatory and voluntary payroll deductions. Understand exactly what these deductions as you eliminate paycheck surprises and balance your personal budget.

Mandatory Payroll Deductions 

Employers are required by law to withhold several deductions from your paycheck. If they do not comply, they face fines, lawsuits and the potential end of their business.

The mandatory payroll deductions on your pay stubs include:

• Federal income taxes, every employee in the United States pays the same federal income tax
• State taxes that vary based on the state in which you are employed
• Local taxes if required by your town or municipality
• Court-ordered withholdings for child support, bankruptcy repayment or other required wage garnishments

Your employer may also deduct Federal Insurance Contributions Act (FICA) taxes. These taxes include a mandatory 6.2 percent social security tax and 1.45 percent Medicare tax. If you make more than $200,000, expect to pay more than these percentages. Also, remember that your employer contributes matching percentages, and these taxes apply to all employees who work in the U.S.

Voluntary Payroll Deductions

Other payroll deductions are not mandated by federal law. However, most of them are convenient for your employer or for you.

You can ask your Human Resources department for details of these voluntary deductions and then decide if you want to participate or not. They include:

• Your required contribution to your employer-provided insurance benefits, including healthcare, dental or vision coverage, if you choose to participate in your employer’s insurance coverage plans
• 401(k) contributions beyond your employer’s matching contribution
• Premiums for additional coverage on an employer-sponsored life insurance policy
• Charitable donations to the United Way or other eligible organization

How are Payroll Deductions Determined?

The amount of salary you receive for doing your job is known as your gross pay. Mandatory and voluntary payroll deductions are taken out of your gross or total pay, and the remaining money is what you receive on your paycheck. The remaining balance is known as your net pay and is the figure you’ll see on your paycheck.

Payroll deductions affect every paycheck you receive. Check every pay stub you receive to verify that the deductions are correct. If you need additional clarification or information about mandatory or voluntary payroll deductions, talk to your Human Resources manager and eliminate paycheck surprises.

After landing a new job, you’ll meet with the Human Resources department. They will discuss your new employee handbook, outline your benefits and answer any questions. One thing you should be prepared to do is choose your insurance options. Here’s what’s available.

Health Insurance

You may be healthy and think you can live without health insurance. However, it’s an important resource, especially if you are in an accident or have a medical emergency that costs you thousands of dollars.

Consider joining the employer-sponsored health insurance plan if that’s available to you. You’ll pay a portion of the premium cost each week and enjoy valuable coverage. To maximize your financial resources, find the best coverage for your needs and balance your budget, research private health insurance options, too.

Life Insurance

Many employers offer a basic life insurance policy to employees. Its coverage typically equals one year of your salary and remains in effect as long as you stay with your current employer. If you have dependents, a mortgage or significant debt, you may want to buy a private life insurance policy, too, for added peace of mind.

Dental Insurance

Dental issues can affect your productivity, motivation and overall health. Consider purchasing dental insurance that pays for regular checkups and dental work.

Carefully check the dental insurance policy offered by your employer. You may save money by using the dental discount card offered by the dentist of your choice.

Disability Insurance

If you become ill or injured off the job, disability insurance provides financial resources that help you manage your household bills. Every employer offers different disability insurance coverage options, but in general, you can choose from short-term, temporary and long-term coverage.

Long-Term Care Insurance

To pay for assisted living or nursing home care, consider investing in long-term care insurance. It’s typically a wise investment for employees who are in their late thirties since rates increase after that age. Purchase it sooner, though, if you have a medical condition such as Alzheimer’s in your family history that may affect your rates as you age.

Cancer Insurance

Cancer insurance pays you a lump sum if you’re diagnosed with cancer. It covers out-of-pocket medical and household expenses and gives you the freedom to focus on your treatment instead of on work.

This insurance is important if cancer is in your family history. Otherwise, consider saving money from each paycheck to cover emergency health problems.

Insurance options can be confusing when you start a job. Become familiar with your options as you decide if you need certain insurance policies. For more information, talk to your insurance agent or Human Resources department.

Retirement can be one of the best seasons of your life. Since you’re not working, you have more time to enjoy your favorite activities and pursue hobbies. However, you also may experience a drop in income. Make a retirement budget as you stretch your financial resources and enjoy your retirement.

Calculate Income

Several factors affect your retirement income. They include:
Retirement date
Inflation
Rate of return on savings and investment accounts
Taxes
Social Security
Because interest rates change, your income may also fluctuate. However, you can use your retirement and savings account statements, last year’s tax return and Social Security estimated payouts to estimate what your income will be during your retirement.

Calculate Fixed Expenses

Some expenses, such as housing and utilities, remain the same every month. Remember to calculate other fixed expenses, too, like taxes, insurance premiums and home maintenance.

Research Health Care Costs

After retirement, you may find that your health insurance costs drastically increase. Research your options under Medicare and private insurance to find the best deal.

List Optional Expenses

You probably buy dozens of optional items every day and don’t even realize it. The list includes entertainment, gym memberships and late payment fees. Take time to calculate all of these optional expenses and see which ones you can cut.

Decide What You Want to Do During Retirement

Your next budgeting step is to list your retirement goals. Do you want to travel, spoil your grandkids, grow a garden or write a novel? The activities you want to pursue can guide your spending as you create a balanced retirement budget.

Make Trade-Offs

Decide which items in your budget are necessities and which you can live without. For example, you may decide to sell your second car and buy an RV or cut the cable bill and save for a vacation. These trade-offs balance your budget and help you make the most of your retirement.

Recalculate as Needed

Your retirement budget will change over time. Maybe you decide you do want to work a part-time job or the interest rate on your investments changes. Recalculate your budget as needed or at least twice a year to make sure you’re still on track.

Take Action Today

It’s easy to put off creating a retirement budget, but you owe it to yourself to put one in place. Spend time today creating a retirement budget that works for you and your lifestyle. If you need help, talk to your financial advisor.

Sometimes, your day job doesn’t include your dream salary. That’s okay. Several benefits make up for a low salary and can actually reduce your taxable income, provide valuable savings and give you more money in your pocket every week.

Health Insurance
Even if you have to contribute a portion of your health insurance premium, this benefit can save you big bucks. Typically, employer-sponsored health insurance plans have a low deductible and may provide coverage for your family or partner.

Life Insurance
In most cases, an employer-sponsored life insurance policy remains in effect as long as you’re employed with the company. It pays for your funeral expenses and other financial obligations or supports the charity of your choice.

Other Insurance Options
If your company offers dental, vision and disability insurance, consider taking advantage of them. These additional insurance options meet important needs and save you money.

Paid Time Off
Work a certain number of hours, and you’ll accrue paid vacation and sick time. You may also earn additional hours off based on your seniority. This paid time off may even be turned into cash if your company reimburses your unused paid time off at the end of the year.

Flexible Work Hours
Flexible work hours give you freedom to leave early for doctor appointments or come in late when you drive your child’s carpool. It’s a perk few companies offer and can reduce stress and help you achieve work-life balance.

401(k) Match
Many companies match employee 401(k) contributions up to a certain percentage. That free money builds your retirement nest egg and compounds over time. You could earn thousands of dollars simply by contributing the maximum amount your employer matches and staying with your company until you’re completely vested in the 401(k) program.

Flexible Spending Accounts
Sometimes, you health insurance doesn’t cover all your medical expenses, including co-pays and over-the-counter medications. It also doesn’t pay for childcare. Flexible spending accounts allow you to save pretax dollars to cover qualified medical and daycare expenses. Sign up and decrease your taxable income.

Stock Options
Some companies offer employees stock options. You may need to wait a certain amount of time before you’re eligible for this benefit, but after you own the stock, you can keep it or sell it as you wish.
These seven benefits can make up for a low salary since they provide financial rewards. Talk to your Human Resources manager today to see if they’re offered at your current job, and consider these benefits when you change jobs, too.

Asking for a raise is stressful. You know you could use the money but don’t want to risk your job asking for it. Learn how to ask for a raise and receive the compensation you believe you deserve.

Be Prepared During Job Interviews

Money is a natural part of every job interview. Do your homework and be prepared to ask for the salary that matches industry standards and your experience. Ideally, it should leave wiggle room for negotiations, too.

Know How Raises are Determined

Before you start a new job or after your company’s management changes, ask for info about how raises are determined. Find out if you can earn more money when you learn new skills, receive a promotion or transfer to a different department.

Document Your Performance

Raises are often tied into performance, so prove to your boss that you are a valuable asset and worth more money. Document your performance over the past year, including any overtime you worked, projects you managed and goals you’ve met. Your solid numbers could influence your boss to increase your compensation.

Research Industry Standards

What do other people in your industry and position make? Do a little research and get figures so you can prove to your boss that you deserve more money.

Know Your Boss

Some bosses prefer a sales pitch and others crunch numbers. When you know what type of boss you have, you can create a raise request that appeals to him or her.

Schedule a Meeting

Your chances of getting a raise increase if you schedule a meeting to discuss it. Don’t try to have this talk in the hallway or after a stressful day. Set time aside to talk privately about a raise.

Time the Request

It’s never a good idea to ask for a raise after you made a big mistake or the company lost a big contract. Assess your timing before you go to bat for a bigger paycheck.

Practice Your Request

Initiating a conversation about money is easier when you’re confident. Write down why you deserve a raise and how much you want. Then practice your speech in front of a mirror or with a trusted friend until you’re confident enough to have a conversation with your boss.

Check Your Expectations

Even though you may deserve a raise and do everything right when you ask for one, your boss could still say no. Be prepared. Start tracking your performance and prepare for another conversation in six months or consider looking elsewhere for a job that does pay a fair wage.

A raise improves your quality of life and self-esteem. Consider these tips as you ask for your next raise at work.