Employee compensation consists of two parts - direct wages and benefits.
Currently, enough points are provided to ensure a core life insurance plan and fully fund the premiums on several of the five health plan options currently available for the employee and eligible dependents. Selection of additional benefits, such as dental insurance, a health plan with a more expensive premium, or increased life insurance, may be paid for through payroll deduction on a pre-tax basis. If there is money left over from an employee s points after benefit selection, it is treated as taxable income. Benefits take effect on the first of the month, following 30 days of employment. Because of the tax implications, this type of a benefit program is governed by Section 125 of the Internal Revenue Service Code.