Employee Benefits Overview

Employee benefits encompass a broad range of mandated and voluntary/employer-provided benefits. When planning your company’s benefits programs, it is important to review all the benefits that are required by law, as well as the requirements and responsibilities related to providing all other benefits you may want to offer in your company. Finally, there are costs associated with many employer-provided benefits, and employers must evaluate those costs within the context of their company’s budget, business goals and rate of growth. 

Mandated Benefits

Social Security Taxes

Every employer must pay social security taxes at the same rate paid by their employees. The Social Security Administration offers information about how to file an employer W-2 form, how to hire employees not covered by social security, and other information for employers:

• Information and Resources for Employers - Basic information and resources for employers.
• Social Security: Business Services Online - A suite of applications enabling organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration.
• Employer W-2 Reporting Instructions and Information - A comprehensive guide to filing Form W-2 with the Social Security Administration. Employers may file electronically.
• Instructions for Hiring Employees Not Covered by Social Security - Instructions on what you should do if you hire an individual not covered by social security.

Unemployment Insurance

Businesses with employees are required to pay unemployment insurance taxes under certain conditions. If your business is required to pay these taxes, you must register your business with your state's workforce agency. The State Taxes page includes links to your state's agency.

Workers’ Compensation

Businesses with employees are required to carry Workers' Compensation Insurance coverage through a commercial carrier, on a self-insured basis, or through the state Workers' Compensation Insurance program. Visit your state's Workers' Compensation Office for more information on your state's program.

Disability Insurance

Some states require employers to provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury. Currently, if your employees are located in any of the following states, you are required to purchase disability insurance: