Employers May Offer Benefits, But They’re Not Required to Do So

Employment is basically a relationship between two people, usually involving consent where one party, generally a company, for profit, not for-profit, cooperative or other similarly structured entity is both the employer and the employee. In this setting, the parties agree to terms of employment and the employees commit to comply with those terms. For most companies, however, employment has much more complex meaning than simply an employer looking for an employee to do the job. More to the point, employment means a relationship involving two people where neither holds exclusive ownership of the relationship nor does either benefit in the other employee’s employment.



There are many kinds of employee benefits. Benefits are paid to an employee for a number of reasons, including health care insurance, paid time off, retirement benefits, dental insurance, life insurance, etc. Benefits may also be provided by an employer to an employee as a kind of compensation for the employer’s time and/or her presence. Where employee benefits are provided by an employer, those benefits are referred to as employer benefits. However, where employee benefits are paid directly by an employee, these are referred to as employee benefits.


There are a number of different types of employee benefits. These include basic employee benefits such as salary, fringe benefits such as stock options and commissions, and insurance benefits such as dental, life, vision, dental, accident, health, life, loss of income and other coverage. In addition, there are a number of non-cash employee benefits that can be provided. These include promotional items, travel expenses, meals and board, and even unpaid time off. These all contribute to employee compensation, although the amount of compensation provided is dependent upon the rules of an employer.

Often times, employers will pay for part or all of the employee benefits. However, they may also have their own benefits program or provide the entire cost of benefits. Many employers offer their employees the opportunity to purchase health plans. This includes premiums and deductibles for medical care, as well as reimbursement when trips and vacations are paid for. Companies also offer other kinds of benefits, including company cars, free lunches, gym memberships, childcare, paid holidays, paid vacations, paid training and education, and paid time off.


When it comes to calculating the costs of your benefits package, an employer may require a Needs Assessment. This means that the employer needs to know what the individual needs and the cost of those needs. Information about the employee and their job duties is also needed. The Needs Assessment is an important part of any benefits program, because it helps to determine which benefits are needed most and how those needs can be met. The Needs Assessment is used to help an employer determine what levels of coverage should be included in the plan, as well as which benefits may be best suited for your particular situation.

The bottom line is that employers may offer benefits, but they are required to use the benefits they offer carefully. Employers need to carefully consider the cost and benefits they are offering to make sure that the benefits actually fit into the benefits budget and into the employee’s budget. Most small businesses do not have the option of providing medical benefits through an employee’s health insurance policy. There are some exceptions to this rule, and if an employee does have coverage through their health insurance policy, they are typically offered this coverage at a reduced rate.

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