Question
1. A restaurant allowing their staff to give their friends free drinks. 2. Employer giving top-selling employees a trip to Europe. 3. A gym allowing
1. A restaurant allowing their staff to give their friends free drinks.
2. Employer giving top-selling employees a trip to Europe.
3. A gym allowing employees to work out for free.
4. Employer paying its employees partly with life insurance.
5. A lumberyard providing employees with disability insurance.
6. Employers giving their staff 1 year paid maternity leave.
7. Lyft making pension contributions for its head-office staff.
8. Employers giving employees 70% discounts on purchases of their outdoors goods.
9. State government paying pensions to employees.
10. Employer paying employees partly with health insurance.
Q. For each of the following employee benefit, why the employer would choose to pay their employees in this form rather than in cash. Place an "O" in the box below each time that particular reason applies. (Multiple answers possible)
Benefits (number applies above) | ||||||||||
Reason benefit is provided | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Tax | ||||||||||
Administration costs / bulk purchase | ||||||||||
Retirement | ||||||||||
Legislation | ||||||||||
Sorting | ||||||||||
Eliminating adverse selection | ||||||||||
Externalities | ||||||||||
Incentives |
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