Employers are obligated by law to give mandatory benefits, which are also known as statutory benefits, to their employees. Worker’s compensation insurance, unemployment insurance, and, in some states and localities, paid sick leave are examples of mandatory benefits for the employees.
These kind of benefits organization by improving the retention rate of employees in the organization. An exemption from mandated benefits is provided to all the self-insured companies under Federal Employment Retirement Income Security Act. Those companies who don’t purchase health insurance coverage of their employees instead they bear the cost incurred on their health by employee are referred to as self- insured companies.