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Miscellaneous: Some companies offer employees a car or mileage allowance which means the company contributes to the cost of a car or reimburses the employee for the cost of gas. This is more common in jobs that require the employee to do a lot of driving. Tech companies, competing to attract young and talented employees, have been known to provide some pretty awesome perks like unlimited use of a ping pong table, 24 hour snack service, dog friendly workspaces, a coffee bar, assigned parking, on site child care, yoga classes, casual Friday, casual every day, on site gyms or gym memberships, tickets to concerts and sporting events, recreation facilities, and parties .
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Shopping on the Job Microsoft’s Redmond, Washington campus has a full-size private indoor shopping mall for the benefit of employees.
Reflect on Learning: Just how valuable are employee benefits? There are many employee benefit calculators that can help you determine the value of benefits in a compensation package. Employee’s Total Compensation Calculator or other employee benefits calculator. www.calcxml.com/calculators/total-compensation. Generally, the monetary value of benefits is significant: about 25–33% of an employee’s compensation package. When you are job searching, focus on the potential employer’s employee benefits package as closely as you do the salary. IV. Independent Contracting An independent contractor is a self-employed person who provides goods or services to a company according to a contract . An independent contractor fills an employer’s needs on a short term or project- to-project basis. They are not an employee of the company (although the hiring company is still referred to as the “employer”). They work if and when the employer needs them. They may work for several different employers during the year. Independent contractors are also called freelancers . Independent contracting is the fastest growing segment of the labor economy . An estimated 53 million Americans freelance, which is approximately 34 percent of the total workforce! In the business world it is referred to as the “gig economy.” The Upside of Indie. There are plenty of lifestyle advantages to independent contracting. Freelancers enjoy a great deal of independence. They are in control of their career destiny. They can be hired to work on-site at the employer’s facility or office, but many are able to work from home, according to their own schedule . This may appeal to recent college grads just starting out who want to gain some experience in their field before seeking full time employment, or to anybody who wants or needs to work from home. Hardworking freelancers are often able to build a substantial roster of clients and make an excellent income. Technology has enabled huge growth in the independent contracting industry because of the ability to work over the internet and by mobile device. Sites like Upwork, Elancer, and Guru enable freelancers to work online for employers all over the world. The Downside of Indie. A freelancer does not receive any employee benefits from an employer . No health insurance, no retirement, no sick leave, no paid vacation. They are not eligible to participate in their employer’s pension or retirement plan. Independent contractors are paid only for the work they do. Nevertheless, there are ways freelancers can independently obtain these benefits: PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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