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    Employee Benefits

    Uploaded by

    Ryan Abonales Bagatua

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Employee Benefits

    Uploaded by

    Ryan Abonales Bagatua
    12 views24 pages

    Original Title

    EMPLOYEE BENEFITS

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    12 views24 pages

    Employee Benefits

    Uploaded by

    Ryan Abonales Bagatua

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    EMPLOYEE

    BENEFITS
    HELLO!
    RYAN A. BAGATUA
    BSA-4
    Misamis University

    2
    What is an
    Employee
    Benefit?
    3
    “ Are all forms of consideration
    given by an entity in exchange for
    services rendered by employees or
    for the termination of employment

    4
    Employee benefits include:

    ▰ A. Postemployment Benefit

    ▰ B. Short-term Employment Benefits

    ▰ C. Other Long term employee Benefits

    ▰ D. Termination benefits

    5
    Postemployement
    Benefits
    “
    Postemployment benefits are employee
    benefits, other than termination benefits and
    short term employee benefits, which are
    payable after completion of employment.

    7
    A. Postemployment Benefit include:

    ▰ A. Retirement benefits, such as


    pensions and lump sum payments on
    retirement
    ▰ B. Postemployment life insurance

    ▰ C. Postemployment medical care


    8
    A. Postemployment Benefit include:

    Remuneration Law
    Package
    9
    A. Postemployment Benefit:

    Postemployment Benefit

    • Defined Contribution Plans • Defined Benefit Plans

    ▰ Funded ▰ Contributory
    ▰ Unfunded ▰ Noncontributory
    10
    Defined
    Contribution
    Plan
    11
    Defined Contribution Plan

    -is a postemployment benefit plan under which an entity pays


    fixed contributions into a separate entity known as the fund.

    -the contribution is definite but the benefit is indefinite.

    -the entity makes contribution to a trustee which administers,


    manages and invest the funds.
    12
    Defined Contribution Plan

    - -the employee retirement depends on how the plan has been


    managed by the trustee.

    13
    Defined Contribution Plan

    - -the employee bears the investment risk in a defind


    contribution plan.

    14
    Defined
    Benefit
    Plan
    15
    Defined Benefit Plan

    -A defined benefit plan is simply defined as a postemployment


    plan other than a defined contribution plan.
    -Under a defined benefit plan, an entity's obligation is to
    provide the agreed benefits to employees.

    16
    Defined Benefit Plan

    -The benefit is definite but the contribution is indefinite.

    -the entity assumes the investment risk in a defined benefit


    plan.

    17
    Defined Benefit Plan

    Contribution
    Holiday-stop paying the contribution
    for a while.
    18
    Postemployment
    Benefit plans
    Under the Law
    19
    Postemployment Benefit plans
    Under the Law

    R.A. 7641
    20
    Accounting for
    Defined Benefit
    Plan
    21
    Accounting for Defined Benefit Plan

    Step #1: Determine the deficit or surplus

    The deficit or surplus is the difference between the following:

    a. Present value of the defined benefit obligation (PV of DBO)

    b. Fair value of plan assets (FVPA), it any

    22
    Accounting for Defined Benefit Plan

    Step #1: Determine the deficit or surplus


    ▰ PV of DBO represents the entity's obligation for the
    accumulated retirement benefits earned by employees to date.
    This is determined using an actuarial valuation method called
    the projected unit credit method.

    23
    THANKS!
    Any questions?
    You can find me at
    @Ryan Abonales Bagatua & [email protected]

    24

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