Government-Mandated Benefits: When most people hear the term ‘employee benefits’, they think of things like health insurance, vacation time. Employee benefits are much more than that though. According to Merriam-Webster’s definition of the word ‘benefit’… a benefit is a service or right provided by an employer in addition to wages or salary. Some of these ‘services’ or ‘rights’ are government mandated and companies are required by law to provide them to their employees. So while you may choose to offer your employees fringe benefits like a retirement plan or dental insurance, there are 3 mandated benefits that most small and mid-size business owners must provide their employees. In addition to paying your employees a salary or hourly wage, the following are government mandated employee benefits which most businesses are required by law to provide. •
Social Security & Medicare Contributions
Workers’ Compensation Insurance
Unemployment Compensation Contributions
Depending on the size of your company and the benefits you offer your employees, you may also be required to provide COBRA, CHIPRA (Children’s Health Insurance Program Reauthorization Act) and Family and Medical Leave. I choose article related to How US health care reform will affect employee benefits. This article analyses the economic impact of these benefits. There are certain benefits which have been mandated by the government which an employer must provide to its employees. When employers become more aware of the new economic and social incentives embedded in the law and of the option to restructure benefits beyond dropping or keeping them, many will make dramatic changes. Some of these benefits have been mandated to ensure that an employee’s future and wellbeing is secured even though the employer does not provide any other benefits to him/her. This article analyses the reasons behind the choices the government has made. It also takes a look at the efficiency of these programs. Economists...
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