Employee Benefits Package

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School

Colorado Technical University *

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670

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Health Science

Date

Apr 3, 2024

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docx

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BENEFITS 1 Employee Benefits Package Shannon Murray Colorado Technical University

BENEFITS 2 Employee Benefits Package Introduction Benefits are an important component in employee recruitment. This paper will discuss the benefits employers are required to provide their employees. It will also discuss various voluntary benefits. Mandatory Benefits Mandatory benefits are those benefits required by law. The US Bureau of Labor Statistics (n.d.) breaks legally required benefits into different groups. These groups are Social Security, Medicare Park A, unemployment insurance, and workers’ compensation. The payroll tax authorized by the Federal Insurance Contributions Act (FICA) provides funding for Medicare Part A, Social Security, and disability benefits. According to FICA, employers must match employee payroll taxes with those collected from the employee (Helpside, 2023). Social Security and Medicare are legally required benefits supported by payroll contributions from both employers and employees. Both benefits are in place to guarantee that employees are cared for after retirement or if they develop specific impairments or medical issues later in life. Unemployment insurance offers a temporary partial income if an employee loses their job (Helpside, 2023). Workers who resign from their positions are not eligible for unemployment benefits unless they have a good cause. Employers pay a state tax on employee earnings to finance unemployment. Worker’s compensation is another required employment benefit. This insurance covers medical bills and missed time from work because of workplace accidents or illnesses. This legislation was passed to protect employers from potential litigation following workplace injuries and illness (Fried, 2017). Each state has its unique standards for its workers' compensation program. Most jurisdictions require companies to have insurance coverage, however, other states create their own workers' compensation

BENEFITS 3 pools to which employers can contribute. Many firms prefer to self-insure workers' compensation to save money, and this technique may be effective if properly handled. The Occupational Safety and Health Administration regulates and enforces workers’ compensation. Voluntary Benefits In addition to the mandatory benefits provided, there are many voluntary benefits an organization may offer as part of its compensation plan. These include but are not limited to, leave benefits, medical, dental, and vision insurance, retirement plans, mental health coverage, Health Savings and Flex Spending Accounts, life insurance, wellness and fitness programs, and short- and long-term disability insurance. Voluntary benefits are benefits employees can opt-in in addition to the basic mandatory benefits provided by their employer. There are many reasons to offer voluntary benefits to employees. Several of the above improve the employees’ health. They can assist in stress reduction and increase job satisfaction. A robust benefits package will also attract top talent. They can help employees save money, and they can decrease time spent off work. Health, Vision, and Dental insurance are important to all employees. Health insurance is one of the most expensive benefits an employer can offer, but it is an expected benefit (Fried, 2017). Employers who offer health insurance may deduct their expenses from pre-tax earnings. Employees are typically provided with a variety of private health insurance plans. Employees may also have the option to cover their families under their health benefits. Although vision and dental insurance are typically categorized as “other health and wellness benefits” (Fried, 2017), They will be grouped with health insurance as one benefit. Mental health coverage will be included with health insurance. This is important because not all employers offer mental health coverage. Recent history and world events have proven the impact mental health has on an employee’s productivity and functionality. Offering health, vision, and dental is important to everyone. Healthcare is expensive and having employer-

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