Government-Mandated Benefits
Businesses use benefits to attract new employees and give current employees a greater sense
of job satisfaction. The United States government has mandated certain benefits for employers
to provide to their employees. In 1994, The United States Chamber of Commerce estimated that
40.7% of average payroll was used for total benefits payments. Here is a small list of some
government mandated benefits programs:
Workers’ Compensation
Job related illness, injuries, emotional impairment due to the job related injury, and job related
emotional strain are covered under Workers’ Compensation laws. The compensation is provided
by the employer through state insurance or a private carrier. The system allows quick payment
of cash benefits, rehabilitation, and medical care given to employees. Employers are protected
from legal action by giving qualified workers the appropriate compensation.
Unemployment Compensation
These benefits are a part of the Social Security Act of 1935. According to Mandated Benefits:
1997 Compliance Guide “Both federal and state statutes exist to protect and preserve the
income of individuals who lose their jobs” through no fault of their own. The claims are paid to
