As an employer, it is important to understand what benefits you are responsible for obtaining for your company. In some cases, creating a benefit package is the best way to go. Some perks, like vacation days and tuition reimbursement, are nice to offer, but they are not required by law. It is vital to be aware of what laws mandate employee benefits so you can plan accordingly.
Social Security and Medical Taxes
Regardless of the size of the busines, every employer in the United States is required to match their employees’ social security and Medicare tax contributions. The cost of these contributions can vary based on the age of the employee and their earned income.
No matter how many employees and employer has, they must carry unemployment insurance. Both part-time and full-time employees are entitled to unemployment benefits.
Employers are required to carry workers compensation insurance which acts as a wage replacement and medical benefit is an employee should become injured or ill while working.
Disability insurance is only mandated for employers in the following states; New York, California, New Jersey, Hawaii, Puerto Rico, and Rhode Island. Disability Insurance provides partial wage replacement insurance coverage to employees that suffer from a non-work related injury or illness that causes them to miss work.
Family Medical Leave
Family medical leave benefits are required by law for any employer that has 50 full-time employees or more. This benefit allows employees to receive up to 12 weeks of unpaid medical leave per year while still maintaining their job and benefits.
The Affordable Care Act requires employers that have more than 50 full-time employees to offer acceptable health insurance.