Managing Human Resources, Eight Edition

Legally Required Benefits

With only a few exceptions, all U.S. employers are legally required to provide Social Security, workers’ compensation, and unemployment insurance coverage for their employees—benefits that are designed to give the workforce a basic level of security. The employer pays a tax on an employee’s earnings for each of these three required benefits. In the case of Social Security, the employee also pays a tax to fund the benefit. A fourth legally required benefit has been added in recent years: Employers must offer unpaid leave to employees in certain family and medical circumstances.

Social Security

A government program that provides income for retirees, the disabled, and survivors of deceased workers, and health care for ...