Learn what employee benefits are, their advantages, and which ones are mandated by law. Then, learn the different benefit options available to your company and discover best practices for implementing your employee benefits program.
What Are Employee Benefits
Employee benefits are non-wage compensations you provide to your employees alongside their regular salaries or wages. These perks are designed to support their well-being, boost job satisfaction, and position your company as a desirable workplace. Benefits can be mandatory, as required by law, or voluntary, offered by you to gain a competitive edge in attracting and retaining talent.
Employees can pay a small portion of the cost, with you as their employer covering the rest. Offered on a monthly basis, the four main categories of employee benefits are:
- Insurance plans, such as life or health insurance
- Retirement plans, such as 401(k) plans
- Additional compensation plans, such as bonuses
- Time off policies, such as paid vacation or sick days
Most benefits are subject to income tax withholding and employment taxes because the IRS considers them part of the employee’s gross income for services rendered. When factoring in mandatory and extra benefits, they can account for up to 9% of your total compensation costs per employee, according to the Bureau of Labor Statistics.
Why Are Employee Benefits Important
Employee benefits contribute to both your employees’ well-being and your company’s success. For example, offering generous employee benefits packages can help you manage a positive employee lifecycle by attracting and recruiting top talent, improving employee health and job satisfaction, and retaining top talent. These benefits enhance your company’s competitive edge and productivity.
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Source : https://www.techrepublic.com/article/the-ultimate-guide-to-employee-benefits/
