Employee welfare trust is a trust that the company provides various benefits to employees, that is, the company regularly deducts a certain proportion of funds from employees' wages or company profits and gives them to the trust institution, entrusting the latter to manage and use them, and stipulates that the purpose of the trust is the employees of the company.
The trustor of employee welfare trust is the company where employees work, the beneficiary is the employees of the company, and the trustee is often various trust institutions.
Employee welfare trust is a trust that the company provides various benefits to employees, that is, the company regularly deducts a certain proportion of funds from employees' wages or company profits and gives them to a trust institution, which entrusts the latter to manage and use them, and stipulates that the trust purpose is employees of the company. The trustor of employee welfare trust is the company where employees work, the beneficiary is the employees of the company, and the trustee is often various trust institutions.
The main purposes of establishing employee welfare trust include:
1. The direct purpose of employee welfare trust is to provide a source of livelihood for retired employees or employees who are unfortunately disabled before retirement age.
2. In addition, in order to motivate employees, help employees accumulate property, encourage employees to participate in enterprise management to a certain extent and share the company's operating profits.
3. For enterprises, employee welfare trust is a way for enterprises to motivate employees and improve labor productivity.
4. It was established to increase the company's income, attract excellent employees and enjoy preferential tax. For example, in the United States, in the process of trust property accumulation, the income and capital gains of trust property are exempted from state and federal income tax, which provides relaxed conditions for the development of employee income trust.
Employee welfare trusts mainly include pension trusts, property accumulation trusts, employee stock ownership trust and other employee welfare trusts.
1, pension trust
Pension Trust-refers to the trust business in which the trust institution accepts the pension fund regularly paid by the client, is responsible for the management and use of the fund property, and regularly pays the pension to employees after retirement. Pension trust is established on the basis of pension system.
2. Property accumulation trust
Property accumulation trust refers to a designated currency trust business that entrusts employees' property accumulation savings to a trust institution for management and application so as to form property in the future.
3. employee stock ownership trust
Employee stock ownership trust refers to the trust arrangement that entrusts the management and application of the company shares purchased by employees to a trust institution, and enjoys the trust income after retirement. Part of the trust fund given to the trust institution comes from the employee's salary, and the other part is funded by the enterprise in the form of bonus to the employee to buy the company's shares. It is based on the employee stock ownership system.
4, other employees benefit trust
Profit sharing trust, which is established for employees to share the company's profits in the future. It has four characteristics.
The purpose of savings plan trust is to provide more retirement income for employees.