What are mandatory benefits?
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.
Type Of Benefits Provided
- Social Security – This term refers to the disability and retirement payments provided by the government. Payroll taxes cover half of the cost of such perks for employees.
- Workers’ compensation – This is a term that refers to the benefits that employees receive when they are injured on the job. Employers are responsible for the whole cost of the insurance.
- Unemployment insurance – This type of insurance assists jobless people in making ends meet until new work can be obtained. Employers are responsible for the entire cost through payroll taxes.
- Family and medical leave – Every firm with more than 50 workers are required to give these benefits to all employees.