For all U.S. businesses, there are essential employee benefits that must be offered.
If your company approaches employee benefits as purely optional additions to a salary package, the harsh reality is that several employee benefits are mandatory in the United States. Both legally required and optional benefits have legal and tax implications for the employers offering them, so be sure that you understand the full effects of your benefit choices before establishing them.
Social Security Taxes
As an employer of full-time employees, you are required to collect social security taxes from your employees and pay additional social security taxes at the same rate as those employees.
The insurance is designed to compensate employees for medical expenses and lost wages due to injuries that occurred onsite. In exchange, employees surrender the ability to sue their employers for negligence in the accident.
This is a type of social welfare designed to cover payments to unemployed individuals.
California businesses are required to offer at least partial salary replacement to workers for work-related illnesses and injuries, should they become disabilities in a way that prevents them from fulfilling their job responsibilities.
This policy compensates employees for time taken off work, only under certain circumstances such as holiday, vacation, jury duty, and sick days.
Family and Medical Leave
Employees are legally entitled to as much as 12 weeks of unpaid, job-protected leave during one 12-month period for one of three circumstances: birth and care of a child, care of a close family member, or care of the individual’s own health.
When considering your benefits, the requirements, laws, and budgets must be kept in mind to keep your company moving forward successfully. Contact Massive Insurance in Pasadena, California for all of your business insurance needs.