Glossary
Plain-language definitions for every term you will encounter. Browse by letter or filter by category.
Use Ctrl+F (Cmd+F on Mac) to search for a specific term on this page.
1
1095-C
An IRS form that applicable large employers must provide to full-time employees documenting the health coverage offered and the employee's enrollment status.
Compliance & Law1095-B
An IRS form provided by health insurers to individuals documenting their months of minimum essential coverage during the tax year.
Compliance & Law4
401k
An employer-sponsored defined contribution retirement plan that allows employees to contribute pre-tax or Roth after-tax dollars from their paycheck.
Retirement403b
A retirement plan similar to a 401k, available to employees of public schools, nonprofits, and certain religious organizations.
Retirement457b
A deferred compensation retirement plan available to state and local government employees and some nonprofit employees.
RetirementA
Annual Enrollment
Another term for open enrollment. The yearly window for making benefit elections.
Health BenefitsACA
Affordable Care Act. The federal health care reform law enacted in 2010 that expanded coverage requirements, established marketplaces, and created employer mandates.
Compliance & LawAffordable Care Act
The full name for ACA. Also known informally as Obamacare. It significantly changed the landscape of employer-sponsored health benefits.
Compliance & LawApplicable Large Employer
An employer with 50 or more full-time equivalent employees, subject to the ACA employer mandate. Abbreviated ALE.
Compliance & LawALE
Abbreviation for applicable large employer. An employer that must comply with ACA reporting and coverage requirements.
Compliance & LawAffordability
An ACA standard requiring that the employee's share of the premium for self-only coverage not exceed a specified percentage of their household income.
Compliance & LawAuto-Enrollment
A plan feature that automatically enrolls eligible employees in the retirement plan at a default contribution rate unless they opt out.
RetirementAuto-Escalation
A plan feature that automatically increases an employee's contribution rate by a set amount each year, up to a cap. Helps employees save more over time.
RetirementAfter-Tax Contribution
Contributions to a retirement plan made with dollars that have already been taxed. Distinguished from Roth contributions, which also grow tax-free.
RetirementAny Occupation
A stricter disability definition that considers you disabled only if you cannot perform any job for which you are reasonably qualified by education and experience.
InsuranceAD&D
Accidental death and dismemberment insurance. Pays a benefit if the employee dies or loses a limb or function due to an accident.
InsuranceADA
Americans with Disabilities Act. A federal law that prohibits discrimination against individuals with disabilities in employment, including requirements for reasonable accommodation.
Compliance & LawAdoption Assistance
An employer benefit that helps cover the costs associated with adopting a child. May include reimbursement for legal fees, agency costs, and travel expenses.
Health BenefitsAppeal
A formal request to have the health plan reconsider a denied claim or coverage decision. Members have the right to appeal under ACA regulations.
InsuranceB
Benefits Package
The collection of benefits an employer offers to employees, which may include health insurance, retirement plans, life insurance, disability coverage, and leave policies.
Health BenefitsBenefit Period
The maximum length of time disability benefits will be paid. For LTD, common benefit periods are 2 years, 5 years, or to age 65.
InsuranceBereavement Leave
Paid or unpaid time off provided to employees following the death of a family member. The number of days and eligible relationships vary by employer policy.
Leave & Time OffBiometric Screening
A health assessment that measures physical characteristics such as blood pressure, cholesterol, blood sugar, and body mass index. Often tied to wellness incentives.
Health BenefitsBeneficiary Designation
The form that names who will receive the proceeds of a life insurance policy or retirement account upon the employee's death.
InsuranceBenefit Eligibility
The criteria that determine which employees qualify for benefit enrollment, typically based on employment status, hours worked, and length of service.
Compliance & LawBenefits Administration
The process of managing employee benefits programs, including enrollment, changes, terminations, compliance, and communication.
Compliance & LawBenefits Communication
The strategy and materials used to educate employees about their benefit options, changes, and deadlines. Effective communication drives participation and satisfaction.
Compliance & LawC
COBRA
Consolidated Omnibus Budget Reconciliation Act. A federal law that allows employees and dependents to continue group health coverage for a limited time after a qualifying event.
Health BenefitsContinuation Coverage
The right to maintain group health insurance after a qualifying event such as job loss, reduction in hours, or divorce. COBRA is the primary federal law governing this.
Health BenefitsCreditable Coverage
Prior health insurance coverage that can be used to reduce or eliminate a pre-existing condition exclusion period under a new plan.
Health BenefitsCertificate of Creditable Coverage
A document from a previous health plan proving periods of coverage. Used to demonstrate creditable coverage when enrolling in a new plan.
Health BenefitsCatch-Up Contribution
An additional amount that individuals age 50 and older can contribute to retirement accounts or HSAs beyond the standard annual limit.
RetirementCarryover
A provision that allows a limited amount of unused FSA funds to roll over into the next plan year. A plan can offer either a grace period or a carryover, not both.
Tax-AdvantagedCopay
A fixed dollar amount the insured pays at the time of receiving a medical service, such as $25 for a doctor visit or $10 for a prescription.
InsuranceCoinsurance
The percentage of covered medical costs the insured pays after meeting the deductible. For example, with 20% coinsurance, the plan pays 80% and the member pays 20%.
InsuranceCliff Vesting
A vesting schedule where the employee becomes 100% vested in employer contributions after a single specified period, such as 3 years.
RetirementCertification
A medical certification from a health care provider that supports an employee's request for FMLA leave by documenting the serious health condition.
Leave & Time OffCafeteria Plan
Another name for a Section 125 plan. Allows employees to choose from a menu of pre-tax benefit options.
Tax-AdvantagedContribution Limit
The maximum amount that can be contributed to a tax-advantaged account in a given year, as set by the IRS. Limits are updated annually for inflation.
RetirementCoordination of Benefits
Rules that determine the order in which multiple insurance plans pay claims when an individual is covered by more than one plan.
InsuranceCOBRA Subsidy
A temporary government or employer subsidy that reduces or eliminates the cost of COBRA premiums for eligible individuals. Has been offered during certain economic crises.
Health BenefitsCompliance
Adherence to laws, regulations, and plan rules governing employee benefits. Non-compliance can result in penalties, lawsuits, and loss of tax-favored status.
Compliance & LawCafeteria Plan Election
The choices an employee makes under a Section 125 plan regarding which pre-tax benefits to receive. Elections are generally irrevocable for the plan year.
Tax-AdvantagedContinuation of Benefits
The ongoing provision of benefits to an employee during certain types of leave, such as FMLA leave, even though the employee is not actively working.
Health BenefitsCommuter Benefits
Pre-tax benefits that allow employees to set aside money for qualified transportation expenses such as parking, transit passes, and vanpool fees.
Tax-AdvantagedClaim
A request for payment submitted by a healthcare provider or insured person to the health plan for services rendered.
InsuranceD
Dependent
A person who relies on the employee for financial support and is eligible for coverage under the employee's benefit plans, typically a spouse or child.
Health BenefitsDomestic Partner
An unmarried partner who may be eligible for benefits coverage depending on the employer's plan and state laws.
Health BenefitsDCFSA
Dependent care flexible spending account. A pre-tax account used to pay for eligible dependent care expenses such as daycare, preschool, and elder care.
Tax-AdvantagedDependent Care FSA
The full term for DCFSA. The annual limit is set per household, not per employee.
Tax-AdvantagedDeductible
The amount an insured person must pay out of pocket for covered services before the insurance plan begins to pay.
InsuranceDefined Contribution
A retirement plan where the employer, employee, or both make regular contributions and the final benefit depends on investment performance. 401k plans are the most common type.
RetirementDefined Benefit
A retirement plan that promises a specific monthly benefit at retirement, calculated by a formula based on salary and years of service. Also called a pension.
RetirementDirect Rollover
A rollover where funds are transferred directly from one retirement plan to another without the employee taking possession. No taxes or penalties apply.
RetirementDOL
Department of Labor. The federal agency that enforces ERISA and oversees employee benefit plan compliance.
Compliance & LawDepartment of Labor
The full name for DOL. Responsible for protecting employee benefit rights and ensuring plan sponsors meet their fiduciary obligations.
Compliance & LawDental Insurance
Coverage for preventive, basic, and major dental services. Most plans have an annual maximum benefit and may have separate deductibles from medical coverage.
InsuranceDependent Care Credit
A federal tax credit available to employees who pay for dependent care expenses. Cannot be claimed for the same expenses reimbursed through a DCFSA.
Tax-AdvantagedE
Employee Benefits
Non-wage compensation provided to employees in addition to their salary, including health insurance, retirement plans, paid time off, and other perks.
Health BenefitsEligible Employee
An employee who meets the requirements for participation in employer-sponsored benefits, typically based on hours worked, employment status, and waiting period.
Compliance & LawElection Period
The time frame during which a person can choose to enroll in COBRA coverage. Generally 60 days from the date of the qualifying event notice.
Health BenefitsEPO
Exclusive provider organization. A type of health plan that covers only in-network providers except in emergencies, but does not require referrals.
InsuranceEssential Health Benefits
Ten categories of services that ACA-compliant plans must cover, including hospitalization, prescription drugs, maternity care, and mental health services.
Compliance & LawEmployer Mandate
An ACA requirement that applicable large employers offer affordable, minimum value health coverage to full-time employees or face penalties.
Compliance & LawEmployer Match
The employer's contribution to an employee's retirement account, usually expressed as a percentage of the employee's contribution up to a limit.
RetirementERISA
Employee Retirement Income Security Act. A federal law that sets standards for retirement and health plans in private industry, including fiduciary duties and reporting.
Compliance & LawEmployee Retirement Income Security Act
The full name for ERISA. Protects employee benefits by establishing rules for plan management, funding, vesting, and disclosure.
Compliance & LawElimination Period
The waiting period between the onset of disability and when benefits begin. For STD, it is typically 0 to 14 days. For LTD, it is usually 90 to 180 days.
InsuranceEAP
Employee assistance program. A confidential benefit that provides employees with short-term counseling, referrals, and support for personal and work-related issues.
Health BenefitsEmployee Assistance Program
The full term for EAP. Services typically include counseling for stress, substance abuse, financial concerns, and family issues at no cost to the employee.
Health BenefitsEvidence of Insurability
Health information required by an insurer to approve coverage amounts above the guaranteed issue level. Also called proof of good health.
InsuranceEssential Job Function
The fundamental duties of a position that the employee must be able to perform, with or without reasonable accommodation.
Compliance & LawErgonomics
The science of designing workstations, tools, and tasks to fit the worker's physical needs, reducing strain and injury risk.
Health BenefitsEquity Compensation
Compensation in the form of company stock or options, including restricted stock units (RSUs), stock options, and employee stock purchase plans.
Health BenefitsEmployee Stock Purchase Plan
A program that allows employees to purchase company stock at a discount, often through payroll deductions. Abbreviated ESPP.
Health BenefitsExplanation of Benefits
A statement from the health insurer detailing what was billed, what the plan paid, and what the member owes for a medical service. Abbreviated EOB.
InsuranceF
FSA
Flexible spending account. A tax-advantaged account that allows employees to set aside pre-tax dollars for qualified medical or dependent care expenses.
Tax-AdvantagedFlexible Spending Account
The full term for FSA. Unlike an HSA, funds typically must be used within the plan year or be forfeited.
Tax-AdvantagedFormulary
A list of prescription drugs covered by a health insurance plan, organized by tiers with different cost-sharing levels.
InsuranceFiduciary
A person or entity with a legal obligation to act in the best interest of plan participants when managing benefit plans. Includes plan administrators and trustees.
Compliance & LawForm 5500
An annual report filed with the DOL and IRS by employee benefit plans. Provides financial and operational information about the plan.
Compliance & LawFMLA
Family and Medical Leave Act. A federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons.
Leave & Time OffFamily and Medical Leave Act
The full name for FMLA. Applies to employers with 50 or more employees within a 75-mile radius.
Leave & Time OffFiduciary Liability
The legal exposure of individuals who manage employee benefit plans. Fiduciaries can be held personally liable for losses resulting from a breach of their duties.
Compliance & LawFringe Benefit
Any form of compensation provided to an employee in addition to regular wages, including benefits, perks, and non-cash compensation. Some fringe benefits are taxable.
Tax-AdvantagedFully Insured Plan
A health plan where the employer pays fixed premiums to an insurance carrier, which then assumes the risk of paying claims.
InsuranceG
Grace Period
An additional period of time (up to 2.5 months) after the plan year ends during which FSA funds can still be used. Not all plans offer this.
Tax-AdvantagedGraded Vesting
A vesting schedule where the employee gradually earns ownership of employer contributions over time, such as 20% per year over 5 years.
RetirementGroup Life Insurance
Life insurance provided through an employer at group rates, typically offering a basic coverage amount at no cost to the employee with options to purchase additional coverage.
InsuranceGuaranteed Issue
A coverage amount that an employee can elect during initial enrollment without providing health information or undergoing medical underwriting.
InsuranceGrievance
A formal complaint filed by a plan member about the quality of care, service, or a coverage decision. Health plans must have a process for handling grievances.
InsuranceH
HIPAA
Health Insurance Portability and Accountability Act. A federal law that protects health information privacy and ensures portability of health coverage between jobs.
Compliance & LawHMO
Health maintenance organization. A type of health plan that requires members to use a network of providers and get referrals from a primary care physician for specialist visits.
InsuranceHDHP
High deductible health plan. A health plan with a higher deductible than traditional plans, paired with lower premiums and eligibility to contribute to an HSA.
InsuranceHigh Deductible Health Plan
The full term for HDHP. IRS sets the minimum deductible and maximum out-of-pocket amounts that qualify a plan as an HDHP each year.
InsuranceHSA
Health savings account. A tax-advantaged account available to employees enrolled in an HDHP, used to pay for qualified medical expenses.
Tax-AdvantagedHealth Savings Account
The full term for HSA. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
Tax-AdvantagedHRA
Health reimbursement arrangement. An employer-funded account that reimburses employees for qualified medical expenses and sometimes health insurance premiums.
InsuranceHealth Reimbursement Arrangement
The full term for HRA. Unlike HSAs and FSAs, HRAs are funded entirely by the employer.
InsuranceHardship Withdrawal
A withdrawal from a 401k plan to meet an immediate and heavy financial need. Subject to income tax and may incur a 10% early withdrawal penalty.
RetirementHighly Compensated Employee
An employee who earns above a threshold set by the IRS or owns more than 5% of the business. HCEs are subject to nondiscrimination testing limits.
Compliance & LawHealth Risk Assessment
A questionnaire or screening tool used to evaluate an employee's health status and identify risk factors. Often part of a wellness program.
Health BenefitsHealth Plan
An organization or arrangement that provides or pays for health care services for its members. Includes employer-sponsored plans, marketplace plans, and government programs.
InsuranceI
ICHRA
Individual coverage health reimbursement arrangement. An HRA that allows employers of any size to reimburse employees for individual health insurance premiums.
InsuranceIn-Network
Healthcare providers and facilities that have contracted with the insurance plan to provide services at negotiated rates. Using in-network providers costs less.
InsuranceIndividual Mandate
The ACA requirement that individuals maintain minimum essential health coverage. The federal penalty was reduced to $0 in 2019, though some states have their own mandates.
Compliance & LawIndirect Rollover
A rollover where the employee receives a distribution and has 60 days to deposit it into another qualified account. Subject to mandatory 20% withholding.
RetirementIntermittent Leave
FMLA leave taken in separate blocks of time rather than one continuous period. Used when a medical condition requires periodic treatment or causes episodic incapacity.
Leave & Time OffIRA
Individual retirement account. A personal tax-advantaged retirement savings account. Types include traditional (pre-tax) and Roth (after-tax).
RetirementImputed Income
The value of certain employer-provided benefits that must be included in an employee's taxable income. Common for group term life insurance above $50,000.
Tax-AdvantagedL
Limited Purpose FSA
An FSA that can only be used for dental and vision expenses. Available to employees who have an HSA, since a regular FSA would disqualify HSA eligibility.
Tax-AdvantagedLoan Provision
A feature that allows participants to borrow from their 401k balance and repay with interest. Typically limited to 50% of the vested balance up to $50,000.
RetirementLong-Term Disability
Insurance that replaces a portion of income when an employee is unable to work for an extended period due to illness or injury. Abbreviated LTD.
InsuranceLTD
Abbreviation for long-term disability insurance. Benefits typically begin after short-term disability ends and can continue for years or until retirement age.
InsuranceLife Insurance
A benefit that pays a death benefit to designated beneficiaries upon the employee's death. Employers often provide basic group life coverage at no cost.
InsuranceLeave Policy
The employer's documented rules governing all types of leave, including vacation, sick time, FMLA, parental leave, bereavement, and personal leave.
Leave & Time OffM
Minimum Value
An ACA standard requiring that a health plan cover at least 60% of the total allowed cost of covered benefits. Plans that do not meet this may trigger penalties.
Compliance & LawMega Backdoor Roth
A strategy that uses after-tax 401k contributions and in-plan Roth conversions to contribute significantly more to a Roth account than normal limits allow.
RetirementMental Health Parity
A federal requirement that health plans provide mental health and substance use disorder benefits at the same level as medical and surgical benefits.
Compliance & LawMail Order Pharmacy
A pharmacy benefit option where medications are delivered by mail, often in 90-day supplies at a lower cost than retail pharmacy.
InsuranceMinimum Essential Coverage
The type of health coverage that satisfies the ACA individual mandate. Includes employer-sponsored plans, marketplace plans, Medicare, and Medicaid.
Compliance & LawN
Nondiscrimination Testing
IRS tests that ensure benefit plans do not disproportionately favor highly compensated employees over rank-and-file employees.
Compliance & LawNetwork
The group of doctors, hospitals, and other healthcare providers that have contracted with a health plan to provide services at negotiated rates.
InsuranceO
Open Enrollment
A designated annual period during which employees can enroll in, change, or cancel their benefit elections for the upcoming plan year.
Health BenefitsOut-of-Pocket Maximum
The most an insured person will pay for covered services in a plan year. After reaching this limit, the plan pays 100% of covered costs.
InsuranceOut-of-Network
Healthcare providers and facilities that do not have a contract with the insurance plan. Services from out-of-network providers typically cost more or may not be covered.
InsuranceOwn Occupation
A disability definition that considers you disabled if you cannot perform the duties of your specific occupation, even if you could work in a different job.
InsuranceOccupational Health
Programs and services focused on the health and safety of employees in the workplace, including ergonomics, injury prevention, and exposure monitoring.
Health BenefitsOut-of-Pocket Cost
The total amount an employee pays for healthcare that is not reimbursed by insurance, including deductibles, copays, coinsurance, and non-covered services.
InsuranceOpen Access
A plan design that allows members to see any in-network provider without a referral, combining features of HMO cost control with PPO flexibility.
InsuranceP
PPO
Preferred provider organization. A type of health plan that offers a network of providers at lower cost but allows out-of-network visits at higher cost without referrals.
InsurancePOS
Point of service. A type of health plan that combines features of HMO and PPO plans, requiring referrals for specialists but offering some out-of-network coverage.
InsurancePremium
The amount paid periodically (usually monthly) for health insurance coverage. Employers typically pay a portion and employees pay the remainder through payroll deduction.
InsurancePrior Authorization
A requirement that the health plan approve certain services, procedures, or medications before they are provided. Ensures the treatment is medically necessary.
InsurancePension
A defined benefit retirement plan funded by the employer that provides a guaranteed monthly income in retirement based on a formula.
RetirementPlan Administrator
The person or entity responsible for the day-to-day operation and management of an employee benefit plan.
Compliance & LawPlan Sponsor
The employer or organization that establishes and maintains an employee benefit plan. The plan sponsor has overall responsibility for the plan.
Compliance & LawPayroll Deduction
The method of collecting an employee's share of benefit premiums and contributions directly from their paycheck, either pre-tax or after-tax.
Tax-AdvantagedPre-Tax
Contributions or deductions taken from an employee's paycheck before income taxes are calculated, reducing taxable income. Applies to many health and retirement contributions.
Tax-AdvantagedPlan Year
The 12-month period designated for benefit plan administration, reporting, and enrollment. May follow the calendar year or a different fiscal year.
Compliance & LawPaid Time Off
A bank of days employees can use for vacation, personal time, or sick leave. PTO combines traditional separate leave categories into one flexible pool.
Leave & Time OffPTO
Abbreviation for paid time off. Offers employees flexibility in how they use their allotted days away from work.
Leave & Time OffParental Leave
Leave granted to parents following the birth, adoption, or foster placement of a child. May be paid or unpaid depending on employer policy and state law.
Leave & Time OffPension Survivor Benefit
A provision in a defined benefit plan that provides ongoing payments to the surviving spouse or designated beneficiary after the participant's death.
RetirementPremium Conversion
A Section 125 plan feature that allows employees to pay their share of health insurance premiums with pre-tax dollars.
Tax-AdvantagedProhibited Transaction
A transaction between a benefit plan and a disqualified person (such as the plan sponsor or fiduciary) that is forbidden under ERISA and the tax code.
Compliance & LawPCORI Fee
A fee assessed on health plan sponsors to fund the Patient-Centered Outcomes Research Institute. Reported and paid annually on IRS Form 720.
Compliance & LawPrimary Care Physician
A doctor who provides general medical care and coordinates referrals to specialists. Required as a first point of contact in HMO plans. Abbreviated PCP.
InsurancePreventive Care
Health services aimed at preventing illness or detecting conditions early, such as annual physicals, immunizations, and screenings. Covered at no cost under ACA plans.
InsurancePrescription Drug Coverage
The portion of a health plan that covers medication costs. Drugs are typically organized into tiers on a formulary with different cost-sharing levels.
InsuranceQ
Qualifying Life Event
A significant life change that triggers eligibility for a special enrollment period, such as marriage, divorce, birth, adoption, or loss of other coverage.
Health BenefitsQualified Dependent
A dependent who meets specific plan criteria for benefit coverage. Rules vary by plan type and IRS regulations.
Health BenefitsQualifying Event
An event that triggers COBRA eligibility, such as termination of employment, reduction in hours, death of the covered employee, divorce, or a dependent aging out.
Health BenefitsQSEHRA
Qualified small employer health reimbursement arrangement. An HRA option for small employers (under 50 employees) that reimburses employees for individual health insurance premiums and medical expenses.
InsuranceQualifying Medical Expense
A medical cost that is eligible for reimbursement from an HSA, FSA, or HRA. The IRS publishes a comprehensive list of qualifying expenses in Publication 502.
Tax-AdvantagedR
Required Minimum Distribution
The minimum amount that must be withdrawn from tax-deferred retirement accounts starting at a specified age. Abbreviated RMD.
RetirementRMD
Abbreviation for required minimum distribution. Failure to take RMDs results in significant tax penalties.
RetirementRoth 401k
A 401k contribution option where contributions are made with after-tax dollars. Qualified withdrawals in retirement are tax-free, including earnings.
RetirementRollover
The transfer of funds from one retirement account to another without triggering a taxable event. Common when changing jobs or consolidating accounts.
RetirementReduced Schedule
An FMLA leave arrangement where the employee works fewer hours per day or fewer days per week than their normal schedule.
Leave & Time OffReturn to Work
The process of an employee coming back to their job after a leave of absence. May involve fitness-for-duty certifications and transitional duty arrangements.
Leave & Time OffReasonable Accommodation
A modification to a job, work environment, or process that enables an employee with a disability to perform essential job functions. Required under the ADA.
Compliance & LawRSU
Restricted stock unit. A promise to deliver company shares to the employee after vesting conditions are met, typically based on time or performance milestones.
Health BenefitsReferral
An authorization from a primary care physician directing a patient to see a specialist. Required in HMO plans, typically not required in PPO plans.
InsuranceS
Special Enrollment Period
A time outside of open enrollment when employees can change their benefits due to a qualifying life event such as marriage, birth of a child, or loss of coverage.
Health BenefitsSafe Harbor
A type of 401k plan design that automatically satisfies nondiscrimination testing by meeting specific employer contribution or matching requirements.
RetirementSummary Plan Description
A document that explains the key features of an employee benefit plan in plain language, including eligibility, benefits, costs, and procedures. Abbreviated SPD.
Compliance & LawSPD
Abbreviation for summary plan description. Employers are legally required to provide an SPD to plan participants.
Compliance & LawSummary of Material Modifications
A document that describes significant changes to a benefit plan. Must be distributed to participants within a specified time after the change.
Compliance & LawSerious Health Condition
Under FMLA, an illness, injury, impairment, or physical or mental condition involving inpatient care or continuing treatment by a health care provider.
Leave & Time OffShort-Term Disability
Insurance that replaces a portion of an employee's income when they are unable to work due to a non-work-related illness or injury. Abbreviated STD.
InsuranceSTD
Abbreviation for short-term disability insurance. Typically covers 60 to 70% of salary for up to 13 to 26 weeks.
InsuranceSupplemental Life
Additional life insurance coverage an employee can purchase beyond the employer-provided basic life benefit, often at group rates.
InsuranceSection 125 Plan
An IRS provision that allows employees to pay for certain benefits with pre-tax dollars, reducing their taxable income. Also called a cafeteria plan.
Tax-AdvantagedSabbatical
An extended period of leave, often several weeks or months, granted to employees after a specified period of service. Usually used for rest, education, or personal projects.
Leave & Time OffSummary of Benefits and Coverage
A standardized document required by the ACA that helps employees compare health plan options by presenting key features in a uniform format. Abbreviated SBC.
Compliance & LawStudent Loan Repayment
An employer benefit where the company makes payments toward an employee's student loan debt. A growing benefit used to attract and retain talent.
Health BenefitsStipend
A fixed allowance provided by the employer for a specific purpose, such as wellness, home office setup, or professional development. May be taxable income.
Health BenefitsStock Options
The right to purchase company stock at a predetermined price (exercise price) within a specified time period. Part of equity compensation.
Health BenefitsSalary Continuation
An arrangement where the employer continues paying an employee's salary during a period of disability, sometimes in lieu of or in addition to disability insurance.
InsuranceSick Leave
Time off from work due to illness or medical appointments. May be a separate bank of days or included within a broader PTO policy.
Leave & Time OffSpecialty Drug
A high-cost medication used to treat complex or chronic conditions. Often requires prior authorization and may have separate cost-sharing rules.
InsuranceSelf-Funded Plan
A health plan where the employer pays claims directly from its own funds rather than purchasing insurance from a carrier. Also called self-insured.
InsuranceStop-Loss Insurance
Insurance purchased by self-funded employers to limit their financial exposure from very high claims. Includes specific (per person) and aggregate (total) coverage.
InsuranceT
Total Compensation
The complete value of an employee's pay package, including base salary, bonuses, equity, and the employer's cost of providing benefits.
Health BenefitsTPA
Third party administrator. An organization hired by the plan sponsor to handle administrative functions of the benefit plan, such as claims processing and compliance.
Compliance & LawThird Party Administrator
The full term for TPA. Handles operational tasks so the employer can focus on business while ensuring plan compliance.
Compliance & LawTelemedicine
The delivery of health care services remotely through video, phone, or messaging. Many health plans now cover telemedicine visits, often at a lower copay.
Health BenefitsTransitional Duty
Temporary modified or alternative work assignments offered to an employee returning from injury or illness who cannot yet perform their full regular duties.
Leave & Time OffTuition Reimbursement
An employer benefit that pays for all or part of an employee's educational expenses. May have annual caps and requirements for course relevance or minimum grades.
Health BenefitsTiered Network
A plan design that groups providers into tiers based on cost and quality measures, with lower cost-sharing for higher-tier (preferred) providers.
InsuranceU
Use It or Lose It
The rule that unspent FSA funds are forfeited at the end of the plan year. Some plans offer a grace period or carryover provision to soften this rule.
Tax-AdvantagedUnderwriting
The process by which an insurer evaluates the risk of providing coverage to an individual. May involve health questionnaires or medical exams.
InsuranceV
Vesting
The process by which an employee earns the right to keep employer contributions to their retirement account. Unvested amounts may be forfeited if the employee leaves.
RetirementVoluntary Benefit
A benefit offered through the employer but paid for entirely by the employee, typically through payroll deduction at group rates. Includes supplemental life, disability, and more.
InsuranceVision Insurance
Coverage for eye exams, glasses, and contact lenses. Typically a separate policy from medical insurance with its own premium.
InsuranceW
Workers Compensation
Insurance that provides wage replacement and medical benefits to employees who are injured or become ill as a direct result of their job.
InsuranceWaiting Period
The period of time a new employee must wait before becoming eligible for benefits. ACA limits the waiting period for health coverage to no more than 90 days.
Compliance & LawWellness Program
An employer-sponsored initiative that encourages healthy behaviors through activities, screenings, education, and incentives. May include gym subsidies, health coaching, or biometric screenings.
Health BenefitsW-2
The tax form employers provide to employees showing total wages earned and taxes withheld during the year. Also includes the value of employer-sponsored health coverage.
Tax-Advantaged