Federally Mandated Employee Benefits Essay

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Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act. Social Security along with …show more content…

Another benefit assurance an employee has is Workers’ Compensation Insurance. The second employment benefit required by Federal law is workers’ compensation insurance, otherwise known as workers’ comp. It is a Federal tax and in most States, employers and employees must contribute to State workers’ compensation programs as well, which provides financial support to people who are unable to work because of a workplace injury or illness. “Workers’ compensation insurance provides medical care and treatment, rehabilitation and replacement income for employees due to job related injuries and illnesses workers compensation programs provide benefits to those workers disabled by occupational illness or injury” (, n.d.). Workers compensation insurance is the protection of employees from loss of income due to job loss. In addition, it is to cover extra expenses associated with job-related injuries or illness. Injuries and illnesses more frequently covered by workers compensation insurance are situations where a disability is temporary or permanent, this in includes partial and complete disabilities. It also covers impairments obtained at employer-sanctioned events, such as social events and it covers an employee while traveling for business purposes.

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