This document provides information on employment benefits that are required by US law and optional benefits commonly provided by businesses. It discusses benefits like Social Security (401k plans), unemployment insurance (which varies by state), workers' compensation insurance (also varies by state), and disability insurance (required in some states). It also covers optional benefits businesses may provide, such as health insurance, and includes a glossary of relevant terms.

1. Madeline Wood
HRONE | SUITE 603, ORIENTAL CENTER, 699 WEST NANJING ROAD / 31 WUJIANG ROAD, JINGAN
DISTRICT, SHANGHAI, CHINA. 200041
United States
Employment
Benefits
REQUIRED AND OPTIONAL BENEFITS

2. 2 Madeline Wood 2016 5 13
Contents
Benefits Required by U.S. Law
Social Security (401k)
Percent Matches
Types of Saving Plans
Unemployment Insurance by state
Workers’ Compensation by state
Disability Insurance
Optional Benefits
Health Insurance
Glossary of Terms
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6
8
9
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10

3. 3 Madeline Wood 2016 5 13
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
Social Security
401k is a form of social
security for the retirement of
individual employees in the
United States.
Generally, a Fidelity
Investments
Administrator is hired by
the business to update
employees about their
planes, its performance,
their paperwork, and to
assist them with
questions and requests.
Each individual controls
how their money is
invested, but most plans
are offer a spread of
mutual funds.
Some companies allow
instant enrollment,
whereas others require a
person to be employed
for a year before
enrollment.
401k’s are protected even
if the company goes
bankrupt, but the
employees’ plans are
terminated.
Percent Matches
A company can choose a
percentage to match an
employee’s contribution
his or her retirement
fund. This is generally
never above 3%.
Ex. An employee with a
salary of $50,000 is
employed by a company
with a 3% percent match.
The company is then
required to match…at
least $1,500 (3% of the
employee’s income).
The employee can
contribute up to $15,500
if under 49. Those
employees above 49 can
contribute 16,000 to their
retirement fund.
A business will not
exceed 3 percent of the
employee’s salary. The
dollar amount
contributed by both the
employer and employee
to the employee’s
retirement savings cannot
exceed 100% of the
employee’s salary.
Two Common Types of
Savings Plans:
Traditional:
• Wages are
contributed before
taxes from each pay
check
• Taxable income drops
by the amount
contributed, but
earnings upon
withdrawal are taxed
• No access before a
person is 59.5 years
old or if a person
leaves his or her
employer at 55 years-
old
• 10% penalty for
collecting early
Roth:
• Contributions are
made on an after tax
basis
• No taxes paid upon
withdrawal
• Free access to money
as long as employee
has held that account
for 5 years

4. 4 Madeline Wood 2016 5 13
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
Unemployment
Insurance
Unemployment Insurance varies
by state
Alabama:
http://www.labor.alabam
a.gov/uc/employer.aspx
Alaska:
http://labor.state.ak.us/e
stax/
Arizona:
http://www.azdes.gov/es
a/uitax/emp.asp#pay
Arkansas:
https://dws.arkansas.gov/
Employers/UI_Contributi
on.htm
California:
http://www.edd.ca.gov/
Unemployment/default.h
tm
Connecticut:
http://www.ctdol.state.ct
.us/uitax/txmenu.htm
Delaware:
http://ui.delawareworks.c
om/
District of Columbia:
http://does.dc.gov/servic
e/employer-tax-
information-
unemployment-
insurance
Florida:
http://dor.myflorida.com/
dor/taxes/reemployment.
html
Georgia:
http://www.dol.state.ga.
us/em/tax_and_wage_re
ports.htm
Hawaii:
http://www.hawaii.gov/la
bor/ui/index.shtml
Idaho:
https://labor.idaho.gov/d
nn/idl/Businesses/eservic
es.aspx
Illinois:
http://www.ides.illinois.g
ov/Pages/Unemployment
_Taxes_and_Reporting.as
px
Indiana:
http://www.in.gov/dwd/2
345.htm
Iowa:
http://www.iowaworkfor
ce.org/ui/uiemployers.ht
m
Kansas:
https://www.dol.ks.gov/G
etKansasBenefits.aspx
Kentucky:
https://kewes.ky.gov/
Louisiana:
http://www.laworks.net/
FAQs/FAQ_MainMenu.as
p#UI
Maine:
http://www.maine.gov/la
bor/unemployment/tax.h
tml
Maryland:
http://www.dllr.state.md.
us/employment/unemplo
yment.shtml
Massachusetts:
http://www.mass.gov/lw
d/unemployment-insur/
Michigan:
http://www.michigan.gov
/uia/0,1607,7-118-26898-
--,00.html

5. 5 Madeline Wood 2016 5 13
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
Minnesota:
www.uimn.org/uimn/em
ployers/
Mississippi:
Not provided
Missouri:
http://www.labor.mo.gov
/DES/Employers/info_em
ployers.asp
Montana:
http://dli.mt.gov/
Nebraska:
http://www.dol.nebraska.
gov/nwd/center.cfm?PRIC
AT=2&SUBCAT=2E
Nevada:
https://uitax.nvdetr.org/c
rp_home
New Hampshire:
https://nhuis.nh.gov/emp
loyer/empsplash.jsp?REGI
STER_TYPE=REGISTERED_
USER
New Jersey:
http://lwd.dol.state.nj.us/
labor/ui/ui_index.html
New Mexico:
http://www.dws.state.nm
.us/
New York:
http://www.labor.state.n
y.us/ui/employer.shtm
North Carolina:
http://desncc.com/desho
me
North Dakota:
http://www.jobsnd.com/r
esources/employers-
guide
Ohio:
http://jfs.ohio.gov/ouc/uc
tax/registering_as_an_em
ployer.stm
Oklahoma:
http://www.ok.gov/oesc_
web/Services/Unemploy
ment_Insurance/Employe
r_Information.html
Oregon:
http://www.oregon.gov/E
MPLOY/TAX/index.shtml
Pennsylvania:
http://www.portal.state.
pa.us/portal/server.pt?op
en=514&objID=552162&
mode=2
Puerto Rico:
http://www.dtrh.gobiern
o.pr/
Rhode Island:
http://www.dlt.ri.gov/ui/
South Carolina:
http://dew.sc.gov/404.ht
ml
South Dakota:
http://www.state.sd.us/a
pplications/LD01DOL/fra
meset.asp?navid=296&fil
tertype=1
Tennessee:
http://www.tn.gov/maint
/tngov/notfound.shtml
U.S. Virgin Islands:
http://www.vidol.gov/Uni
ts/Unemployment_Insura
nce/UI_TAXi.htm
Utah:
https://jobs.utah.gov/ui/C
ontinuedClaims/UIAccou
ntHome.aspx
Vermont:
http://www.labor.vermo
nt.gov/Business/Unemplo
ymentTaxBenefitInforma
tion/tabid/112/Default.as
px

6. 6 Madeline Wood 2016 5 13
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
Virginia:
http://www.vec.virginia.g
ov/vecportal/unins/insun
emp.cfm
Washington:
http://www.esd.wa.gov/u
itax/index.php
West Virginia:
http://www.workforcewv
.org/UC/UCMain.asp
Wisconsin:
http://unemployment.wis
consin.gov/SUITESPortal
Welcome/EmployerPortal
Welcome.aspx?target=Ac
countMain.aspx
Wyoming:
http://wyomingworkforce
.org/job-seekers-and-
workers/unemployment-
insurance/Pages/default.a
spx
Workers’
Compensation
Businesses must have Workers’
Compensation Insurance
Coverage through a commercial
carrier, self-insured basis, or
through the specific state’s
worker’s compensation
program
Alabama:
http://labor.alabama.gov/
wc/insurance.aspx
Alaska:
http://www.tax.state.ak.
us/
Arizona:
http://www.ica.state.az.u
s/Legal/LEGAL_Legal_Mai
n.aspx
Arkansas:
http://www.awcc.state.ar
.us/employerbasicfacts.ht
ml
California:
http://www.dir.ca.gov/d
wc/faqs.html
Colorado:
http://www.coworkforce.
com/dwc/QuickList/Empl
oyer asp
Connecticut:
http://wcc.state.ct.us/
Delaware:
http://dol.delaware.gov/
District of Columbia:
http://does.dc.gov/sites/d
efault/files/dc/sites/does/
publication/attachments/
DOES_Employees_Rights.
pdf
Florida:
http://www.myfloridacfo.
com/division/wc/#.U8mE
drHYC4E
Georgia:
http://sbwc.georgia.gov/p
ortal/site/SBWC/
Hawaii:
http://hawaii.gov/labor/d
cd/aboutwc.shtml
Idaho:
http://iic.idaho.gov/empl
oyer/employer.html
Illinois:
http://www.iwcc.il.gov/in
surance.htm
Indiana:
http://www.in.gov/workc
omp employers

7. 7 Madeline Wood 2016 5 13
Iowa:
http://www.iowaworkfor
ce.org/wc/compliance/co
mpliance.htm
Kansas:
http://www.workerscom
pensation.com/kansas.ph
p
Kentucky:
http://insurance.ky.gov/s
tatic_info.aspx?static_id=
27&MenuID=88&Div_id=
15
Louisiana:
http://www.laworks.net/
Homepage.asp
Maine:
http://www.maine.gov/p
fr/insurance/consumer/
workcomp.htm
Maryland:
http://www.wcc.state.m
d.us/Gen_Info/FAQ%20E
mployers.html
Massachusetts:
http://www.wcribma.org
/mass/
Michigan:
http://www.michigan.go
v/wca/0,1607,7-191-
26925---,00.html
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
Minnesota:
http://www.doli.state.m
n.us/WorkComp.asp
Missouri:
http://insurance.mo.gov/
consumers/wc/
Montana:
http://erd.dli.mt.gov/wo
rk-comp-regulations
Nebraska:
http://www.doi.ne.gov/
workcomp/nwcip.htm
Nevada:
http://dirweb.state.nv.us
/WCS/employer.htm
New Hampshire:
http://www.nh.gov/labo
r/workers-comp/
New Jersey:
http://lwd.dol.state.nj.us
/labor/wc/wc_index.html
New Mexico:
http://www.tax.newmexi
co.gov/Businesses/worke
rs-compensation.aspx
New York:
http://www.wcb.ny.gov/
content/main/Employers
/Employers.jsp
North Carolina:
http://www.ic.nc.gov/em
ployers.html
Ohio:
http://www.bwc.ohio.go
v/employer/EmpSection
Map.asp
Oklahoma:
http://www.ok.gov/odol
/Business_Services/Work
ers'_Compensation_Enfor
cement/Understanding_
Workers'_Compensation/
index.html
Oregon:
http://wcd.oregon.gov/c
ommunications/emp_inf
o.html
Pennsylvania:
http://www.portal.state.
pa.us/portal/server.pt?o
pen=514&objID=590337&
mode=2
Puerto Rico:
http://www.cfse.gov.pr/
Rhode Island:
http://www.dlt.ri.gov/wc
/infoemployer.htm

8. 8 Madeline Wood 2016 5 13
South Carolina:
http://www.wcc.sc.gov/P
ages/default.aspx
South Dakota:
http://dol.sd.gov/worker
scomp/employerrights_r
esponsibilities.aspx
Tennessee:
http://www.state.tn.us/r
evenue/
Texas:
http://www.tdi.texas.gov
/consumer/wc.html
Utah:
http://laborcommission.
utah.gov/media/pdfs/ind
ustrialaccidents/pubs/Em
ployers%20Guide-
Workers'%20Comp%20Ar
t.pdf
Vermont:
http://labor.vermont.gov
/workers-compensation/
Virginia:
http://www.vwc.state.va
.us/employers_guide.htm
Washington:
http://www.lni.wa.gov/C
laimsIns/Insurance/Learn
/Intro/Default.asp
United States
Employment
Benefits
Employment Benefits Required U.S. Law
Provided by Businesses
West Virginia:
http://www.business4wv
.com/B4WVPublic/defaul
t.aspx
Wisconsin:
https://dwd.wisconsin.go
v/wc/
Wyoming:
http://wyomingworkforc
e.org/employers-and-
businesses/workers-
compensation/Pages/def
ault.aspx
Disability
Insurance
These states and territories
require businesses to provide
partial wage replacement
insurance coverage to disabled
employees for non-work related
sickness or injury.
California:
http://www.edd.ca.gov/
Disability/Employers_Info
rmation.htm
Hawaii:
http://www.hawaii.gov/l
abor/dcd/abouttdi.shtml
New Jersey:
http://lwd.dol.state.nj.us
/labor/tdi/tdiindex.html
New York:
http://www.wcb.ny.gov/
content/main/DisabilityB
enefits/Employer/comply
WithLaw.jsp
Puerto Rico:
Information unavailable
Rhode Island:
http://www.dlt.ri.gov/tdi
/

9. 9 Madeline Wood 2016 5 13
United States
Employment
Benefits
Optional United States Employment Benefits
Health
Insurance
In the United States, healthcare
is offered by the government,
but it can also be purchased at
a better quality individually or
through an individual’s
employer.
Laws Regarding Group
Health Plans:
Consolidated Omnibus
Budget Reconciliation Act
(COBRA)
• Requires group health
plans to offer
continuation coverage
to qualified
beneficiaries when
group health coverage
would be otherwise lost
due to qualifying events
o Employees
o Spouses
o Former Spouses
o Dependent
Children
• Sets rules for how and
when continuation
coverage must be
offered and provided,
how employees and
their families may elect
continuation coverage
• Applies to single-
employer group health
plans maintained by…
employers with at least
20 employees on more
than 50% of its business
days in the previous
calendar year
• Part-time employees
count as a fraction of
full-time employees
Health Insurance
Portability and
Accountability Act (HIPAA)
• Group health plans
must allow eligible
individuals to enroll
upon certain specified
events regardless of any
late enrollment
provisions
• Plan must permit loss-
of-coverage special
enrollment upon:
o Loss of eligibility
o Termination of
employer
contributions
• Current employees
who lose eligibility
must be permitted to
special enroll
• Dependents of current
employees who lose
eligibility must be
permitted to special
enroll even if
dependents did not
lose coverage
• Plans must allow an
employee 30 days to…
request enrollment
• Coverage must become
effective no later than
the first day of first
month following a
completed request
Mental Health Parity and
Addiction Equity Act
(MHPAEA) and Mental
Health Parity Act (MHPA)
• Mental health
requirements apply
separately with respect
to each combination of
medical/surgical
benefits and mental
health benefits
o Considered to be a
single group health
plan
• Employers with under
50 employees may be
exempt from the
mental health parity
provisions
• Plan must have a filed
notice with EBSA
Newborns’ and Mothers’
Health Provisions Act
• Most plans are required
to cover maternity
benefits
• Some provisions only
apply to certain plans

10. 10 Madeline Wood 2016 5 13
United States
Employment
Benefits
Optional United States Employment Benefits
Women’s Healthcare and
Cancer Rights Act
(WHCRA)
• Only applies to plans
that offer benefits with
respect to a
mastectomy
Genetic Information
Nondiscrimination Act
(GINA)
• A group health plan
cannot adjust premium
or contribution
amounts for the plan
on the basis of genetic
information
• Manifestation of a
disease in one
individual cannot be
used as genetic
information about
other group members
to further increase the
premium for a group
plan
• Generally, does apply
to very small health
plans including retiree-
only health plans
Michelle’s Law
• Medically necessary
leave of absence
means with respect to
a dependent child in
connection with a
group health plan, a…
leave of absence from or
other change in
enrollment status in a
postsecondary
educational institution
that begins while the
child is suffering from a
serious illness or injury
and causes the child to
lost student status for
purposes of coverage
under the terms
• Issuer shall not
terminate coverage of a
dependent child due to a
medically necessary
leave of absence
The Patient Protection
and Affordable Care Act:
• Applies to group plans
and insurance issuers
• Dependent coverage of
children to age 26
• Grandfathered plans
• Preexisting conditions
• Coverage of preventive
services
• Internal claims and
appeals
• External review process
• Summary of benefits and
coverage
• Still in early stages, but
more guidance will be
issued here:
http://www.dol.gov/ebsa/
healthreform/
Glossary of
Terms
Due to the extensive
vocabulary of United States
benefit laws this link provides a
short glossary of specific
terms:
http://www.bls.gov/ncs/ebs/det
ailedprovisions/2008/glossary
_2008_2009.htm