Employees are given a base salary or wage amount, and that is their basic compensation for doing their job. Employee benefits are anything additional given to employees that compensates them for their work and employment at the company. They are typically non-cash and indirect ways of compensating an employee. A complete benefits package often includes health insurance, paid time off, retirement plans, and similar programs.
Some employee benefits are legally required, and the requirements will differ from state to state. Some states have laws about diverse types of sick leave and other similar benefits. But there are also some federally mandated employee benefits that are important to understand. These benefits are federally required:
Time off for employees to vote, perform jury duty, or serve in the military
Workers’ compensation benefits for employees who are injured on the job
Compliance with the Family and Medical Leave Act (FMLA)
Taxes toward unemployment insurance both on the state and federal level
Contributing to the state short-term disability insurance
If employers meet state and federal requirements for benefits, they can provide any additional benefits they want. Companies are not required to provide health insurance, retirement plans, dental insurance, life insurance, or other similar benefits, but they can be a way to help the company attract employees.
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