Regardless of the industry or size, if you’re starting your business venture in the US, then you’re legally required by the federal government to offer certain mandatory benefits to your employees. Though you can increase the appeal of your employee benefits plan by adding voluntary benefits, there are some minimums that you must offer in your benefits plan as mandated by, and to comply with the law.
Here’s the list of the mandatory employee benefits by the federal government:
Ø Medicare Tax
Employers in the US are required by law to pay 0.9% additional Medicare tax apart from the 1.45% withholding tax paid by employers and employees. This is liable if the compensation of the employee exceeds or is above the threshold figure of $200,000 (if filing as single).
Ø Social Security Tax
By law, US employers are required to pay SST on the earning of every employee, that too at the same rate that is paid by the employee. The rate is 6.2% on taxable income up to $127,000 for the year 2017.
Ø Fulfil Civic Duties
US based employers are instructed by law to allow their employees to fulfil civic duties such as serving in the military, appearing as a crime witness in the court, or serving on the jury.
Ø Workers’ Compensation
Workers’ compensation is another benefit that employers must offer to employees. By law, US employers are mandated to buy insurance to offer benefits and coverage to employees who suffer from work-related illness or injury. The coverage also protects employers from lawsuits. Please note that, every state has a different law pertaining to the workers’ compensation rate paid to employees who get injured on job premises.
Ø Disability Insurance
Employers are also required to buy partial wage replacement insurance for non-work related injuries and illness if you’re operating in Hawaii, New York, Puerto Rico, New Jersey, Rhode Island, and California. This insurance offers financial support to employees who get injured and are unable to perform their job duties.
Ø Medical and Family Leave Act
If you have 50 or more employees, then you’re required to offer them 12 weeks of job protected unpaid leave for any significant medical or family related reason like adoption, or if their family member is suffering from a serious health condition.
For more information on mandatory employee benefits, get in touch with us today. Call us on (877) 355-6070 or email us at info@jsbenefitsgroup.com. Our team of friendly and experienced benefits experts will provide you all the information and assistance that you need.
