Employee Benefits In 2024: The Ultimate Guide (2024)

There are four main types of employee benefits:

1. Health and wellness benefits

2. Financial and retirement benefits

3. Time-off and leave benefits

4. Work-life balance benefits

Health and wellness benefits include health insurance, dental insurance, vision insurance, prescription drug coverage, employee assistance programs and wellness programs. Financial and retirement benefits include 401(k) plans, pension plans, employee stock ownership plans, profit-sharing plans and financial planning assistance. Time-off and leave benefits include vacation days, sick days, paid holidays, parental leave and extended leave. Work-life balance benefits include flexible work arrangements, telecommuting, child care assistance and eldercare assistance.

There are some benefits that are required by law, such as workers’ compensation, unemployment insurance and Social Security. The Affordable Care Act (ACA) also requires employers with 50 or more full-time equivalent employees to offer health insurance to their employees or pay a penalty. Employers should consult with an attorney or HR professional to ensure they are complying with all applicable laws.

Pension and Retirement Plans

Pension and retirement plans are employee benefits that help employees save for retirement. There are two types of retirement plans: defined benefit and defined contribution.

Defined benefit plans provide a source of income for retirees that is typically based on their years of service and salary history. This income is paid out in regular monthly payments. Defined contribution plans, on the other hand, allow employees to contribute a set amount of money to their retirement account each month. The employer may also make contributions to the employee’s account.

There are several different types of retirement plans, including 401(k) plans, 403(b) plans, 457 plans and pension plans. Each type of plan has different rules and regulations regarding employee eligibility, employee contributions and employer contributions.

401(k)

401(k) plans are the most common type of retirement plan offered by employers. Under a 401(k) plan, employees can contribute a percentage of their salary to their retirement account each month. Employers may also make matching or discretionary contributions to employee accounts.

Healthcare and Dental Benefits

An employee benefit that helps pay for medical expenses is health insurance. Health insurance plans vary in terms of the services covered, the deductibles and copayments required and the premiums charged. Health insurance plans can be offered by employers, health insurance companies or the government.

There are several different types of health insurance plans, including PPOs, HMOs and HDHPs. PPOs allow employees to see any doctor or specialist without a referral. HMOs require employees to select a primary care physician who will coordinate their care. HDHPs have high deductibles but lower premiums.

An employee benefit that helps pay for dental care expenses is dental insurance. Dental insurance usually pays for preventive measures, such as teeth cleanings and X-rays, as well as common procedures such as fillings or a tooth removal. Some dental insurance plans also cover major procedures, such as crowns and bridges.

Employers can offer health insurance and dental insurance as part of a group health plan. A group health plan is an employee benefit plan that is sponsored by an employer and provides health and/or dental coverage to employees and their dependents.

Transgender Healthcare

Transgender-inclusive health benefits are employee benefits that cover medically necessary care for transgender employees. Depending on the provider, this type of coverage may include hormone therapy, mental healthcare and surgical procedures.

Healthcare discrimination on the basis of race, color, national origin, sex, disability and age is prohibited by the ACA. However, at the time of publication, the ACA’s application to transgender individuals has been challenged in several pending court cases. The outcomes of those cases may affect whether employers are required to offer transgender-related healthcare as part of their employee health insurance plans. Considering how rapidly this space is changing, we recommend discussing these options with your benefits provider to ensure your healthcare coverage is compliant with current regulations.

Telemedicine/Telehealth

Telemedicine, also known as telehealth, is the use of electronic communications to provide medical care from a distance. Telemedicine can be used for a variety of purposes, including diagnosing and treating patients, providing consultation to other healthcare providers and delivering distant learning opportunities. Telemedicine services are typically provided via video conferencing, but can also be delivered by phone, email or text message.

There are many potential benefits of telemedicine, including increased access to care, improved patient outcomes and lower healthcare costs. Telemedicine can also benefit employers by reducing employee absenteeism and increasing productivity.

Although telemedicine is not a new concept, the COVID-19 pandemic has spurred a significant increase in the use of telemedicine services. This is due in part to the fact that telemedicine can help reduce the spread of infectious diseases, such as COVID-19.

Fertility Benefits

Fertility benefits are employee benefits that help cover the costs of fertility treatments, such as in vitro fertilization (IVF). IVF is a process by which eggs are harvested from a woman’s ovaries and fertilized with sperm in a laboratory. The resulting embryos are then implanted in the woman’s uterus. Fertility benefits may also cover the costs of freezing eggs or sperm. This can be useful for employees who want to preserve their fertility for future use.

Prescription Drugs

Prescription drugs are medications that are prescribed by a doctor to treat a medical condition. Prescription drugs can be obtained from a pharmacy with a valid prescription. Employers often provide prescription drug coverage as part of a group health plan. This type of coverage typically pays for a portion of the cost of prescription drugs, with the employee paying the remainder.

Mental Health

Benefits that help cover the costs of mental healthcare are called mental health benefits. Mental healthcare includes counseling, treatment for mental illness and substance abuse treatment. Mental health benefits may be provided as part of a group health plan or as a separate employee benefit.

Employers are increasingly recognizing the importance of mental healthcare and are offering mental health benefits to their employees. This is due in part to the fact that mental health problems can have a significant impact on employee productivity and well-being.

Employee Assistance Program

An employee assistance program (EAP) is a type of benefit that gives confidential counseling and support services to workers who are having personal or work-related difficulties. Employee assistance programs can provide employees with support for a range of issues, such as stress, anxiety, depression, substance abuse, financial troubles and relationship problems.

EAPs are typically provided by employee assistance professionals, who are trained to provide confidential counseling and support. EAPs can be accessed by employees through a variety of methods, including face-to-face meetings, telephone hotline numbers and online resources.

EAPs can be beneficial for both employees and employers. Employees can get the help they need to resolve personal or work-related problems, which can improve their productivity and well-being. Employers can also benefit from lower employee turnover and absenteeism rates.

Paid Time Off

Paid time off (PTO) is leave that is provided to employees at no cost to the employee. PTO can be used for vacation, sick days, personal days or other purposes. Employers may offer PTO as a benefit to attract and retain employees. PTO can also help employees manage their work-life balance.

The federal Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of unpaid time off for specified family and medical reasons. It applies to employers with 50 or more employees for at least 20 weeks in the current or preceding year. Many states also have laws requiring employers to provide certain types of paid leave, such as sick leave or family leave.

Employers typically offer PTO as part of a comprehensive employee benefits package. PTO is often one of the most popular employee benefits.

Child and Dependent Care Benefits

Employee benefits sometimes help cover the costs of child and dependent care. Child and dependent care benefits may be provided as part of a group health plan or as a separate employee benefit. These benefits can help employees with the costs of daycare, babysitters and other child care expenses.

Employers often offer child and dependent care benefits to attract and retain employees. Child care benefits can also help employees with young children manage their work-life balance. Some employers even offer on-site child care facilities.

Life Insurance

Life insurance is a type of insurance that provides financial assistance to the beneficiaries of an employee who dies. Life insurance benefits may cover the cost of funeral expenses, debts and other final expenses.

To qualify for life insurance, employees must be enrolled in their employer’s life insurance plan. Life insurance benefits are typically paid to the employee’s beneficiaries upon their death.

Disability Insurance

Disability insurance is a type of insurance that provides financial assistance to employees who are unable to work because of a serious injury or illness. Disability insurance pays workers a percentage of their paychecks, helping them remain financially stable until they can return to their jobs.

To qualify for disability insurance, employees must be unable to work due to an injury or illness. Short-term disability insurance benefits are typically paid for up to 26 weeks. Five states and one territory require short-term disability insurance by law. These are California, Hawaii, New Jersey, New York, Rhode Island and Puerto Rico.