What Employee Benefits Are Required by Law?

Your employer may or may not provide you with supplemental benefits. The generosity of their benefits package is up to the discretion of the employer. Still, the federal government does mandate that certain benefits by required by law. Employers should already know this information, but employees ought to familiarize themselves with it. Here are a few of the benefits required by law in the United States.

What Employee Benefits Are Required by Law?

It’s up to your employer whether they offer you supplemental benefits. But some benefits are required by law.

Unemployment Insurance

Many make the mistake of assuming that unemployment insurance is paid for by employees. In fact, it is paid for almost entirely by employers. The cost employers must pay for unemployment insurance varies drastically from state to state, but it is required throughout the country. Unlike other benefits we will discuss today that are required by law, this holds true no matter how many employees a business has.

Health Insurance

Since 2020, the Affordable Care Act has required employers of more than 50 full-time employees to offer some form of health insurance. Failure to do so could result in enormous penalties from the federal government when tax time comes around. The value of the health insurance policies they offer their employees needs to be included on W2-forms. Further paperwork needs to be filed with the IRS concerning the details of the health insurance they provide.

Unpaid Family and Medical Leave

The U.S. Department of Labor’s Family and Medical Leave Act requires employers to provide their workers with as much as 12 weeks of unpaid leave for family or medical reasons annually. This is only true of companies with 50 or more employees.

It is obvious how medical emergencies could result in the sudden inability to work is obvious. But what ‘family’ situations qualify? Here are a few:

  • The birth of a child
  • Caring for family member’s with health conditions
  • Exigencies owing to a family member’s military service

Medicare and Social Security

Earlier, we discussed how many people assume unemployment insurance is paid for by employees. This misunderstanding probably arises from how employees must pay for Medicare and social security taxes. But employers have to pay for these, too. Your employer must match your contributions to both of these.

Partner with Malden Solutions Today

Malden Solutions has a wealth of expertise in providing employer insurance solutions, H.R. solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business.  Stay connected with us on TwitterFacebook, and Linkedin.


This entry was posted on Friday, January 22nd, 2021 at 11:48 am. Both comments and pings are currently closed.