It can be hard to keep track of the meanings of words about a certain topic. When it comes to running a business, it would seem that you are constantly encountering some new word or phrase that you’ll inevitably be googling the definition of.
At Payday HCM, we understand this struggle. We constantly have plenty of clients approaching us with questions about what a word might mean or what this phrase means. Even for us, it can be helpful to have a reference to go back to for those words that you just can’t quite remember the definition of.
Here, we’ve compiled a list of words and phrases related to employee benefits administration. We’ll continue to update this list with new words and phrases related to the topic. Be sure to bookmark this page to keep a reference on all things related to benefits.
401(k) Plan
A retirement savings plan allowing employees to contribute pre-tax earnings, often matched by employers.
Accidental Death and Dismemberment (AD&D) Insurance
Provides financial protection for employees in the event of accidental death or severe injury.
Adoption Assistance Program
Employer-funded programs offering financial support for adoption-related expenses.
Affordable Care Act (ACA) Compliance
Adherence to federal healthcare regulations requiring certain benefits be offered to employees.
Bereavement Leave Policy
Defines the amount of paid or unpaid time off employees can take after a family member's death.
Cafeteria Plan
A benefits plan that allows employees to choose from a variety of pre-tax benefits.
COBRA (Consolidated Omnibus Budget Reconciliation Act)
Provides employees and their families the option to continue health insurance after leaving employment.
Commuter Benefits
Pre-tax savings programs for transportation expenses, including transit passes and parking.
Dependent Care Assistance Program (DCAP)
A tax-advantaged benefit to help employees pay for dependent care services.
Dental PPO (Preferred Provider Organization)
A dental insurance plan offering lower costs with in-network dentists.
Disability Buyout Insurance
Covers the cost of buying out a disabled employee’s ownership interest in a company.
Employee Stock Purchase Plan (ESPP)
A program allowing employees to buy company stock at a discounted rate.
ERISA (Employee Retirement Income Security Act)
Federal law setting minimum standards for retirement and health benefit plans.
EOB (Explanation of Benefits)
A statement from an insurance provider detailing what costs it will cover.
FICA (Federal Insurance Contributions Act)
A payroll tax funding Social Security and Medicare benefits.
Flexible Spending Account (FSA)
An account where employees contribute pre-tax dollars for medical or dependent care expenses.
Grandfathered Health Plan
A health plan exempt from certain ACA requirements because it existed before March 23, 2010.
Group Term Life Insurance
A type of life insurance provided to employees as part of a group policy.
Health Reimbursement Arrangement (HRA)
Employer-funded accounts reimbursing employees for out-of-pocket medical expenses.
Health Savings Account (HSA)
Tax-advantaged savings account for employees enrolled in high-deductible health plans.
HIPAA (Health Insurance Portability and Accountability Act)
Federal law ensuring the confidentiality and security of healthcare information.
Imputed Income
The value of non-cash benefits that must be reported as taxable income.
Long-Term Care Insurance
Covers the cost of extended medical care or assisted living services.
Medicare Secondary Payer (MSP) Rules
Regulations dictating when Medicare pays second to employer group health plans.
Minimum Essential Coverage (MEC)
Health insurance that satisfies the ACA’s mandate for individuals.
Non-Qualified Deferred Compensation Plan (NQDC)
An employer-sponsored retirement plan without the tax benefits of qualified plans.
Paid Family and Medical Leave (PFML)
Programs offering paid time off for family or medical reasons, often state-mandated.
Payroll Deduction IRA
An IRA funded directly through payroll deductions arranged by an employer.
Pension Benefit Guaranty Corporation (PBGC)
A federal agency protecting private-sector pension plans.
Point of Service (POS) Plan
A health insurance plan blending features of HMO and PPO plans, requiring referrals for specialists.
Pre-Tax Commuter Benefits
Allows employees to set aside pre-tax income for transit and parking expenses.
Qualified Medical Child Support Order (QMCSO)
Court orders requiring a health plan to cover a child of a plan participant.
Qualified Small Employer HRA (QSEHRA)
An HRA designed for small businesses not offering group health insurance.
Retiree Health Benefits
Health insurance or subsidies provided to retired employees.
Section 125 Plan
A cafeteria plan enabling employees to pay for certain benefits with pre-tax dollars.
Severance Package
Compensation and benefits offered to employees upon termination of employment.
Short-Term Disability Insurance
Covers a portion of income for employees temporarily unable to work due to illness or injury.
Spousal Carve-Out
Restricts spouses’ access to employer-sponsored health insurance if they have other coverage options.
Stop-Loss Insurance
Protects employers who self-insure by covering claims exceeding a set amount.
Summary Plan Description (SPD)
A document outlining the terms and details of employee benefit plans.
Supplemental Life Insurance
Optional additional life insurance employees can purchase.
Telemedicine Benefits
Access to virtual medical consultations through employer-sponsored plans.
Tuition Assistance Program
Employer-provided financial aid for employees’ educational pursuits.
Vision Care Reimbursement
Covers expenses related to eye exams, glasses, or contact lenses.
Wellness Incentive Program
Rewards employees for participating in health and wellness activities.
Workers' Compensation Insurance
Covers medical expenses and lost wages for employees injured on the job.
Workplace Safety Program
Initiatives aimed at maintaining a safe working environment and reducing accidents.
Wrap Plan Document
Combines multiple employee benefits into one legal plan for compliance purposes.
Curious to learn more about Payday’s benefits services? Feel free to download our employee benefits guide or schedule a meeting with us to learn more about how we can take your business to the next level.
Topics: