U.S. Employee Benefits | Accenture (2024)

FAQs

What are the standard employee benefits in the US? ›

Legally Mandated Benefits. Legally mandated benefits are employee benefits that are required by federal, state or local laws. These benefits can include minimum wage, overtime pay, unemployment insurance, FMLA, COBRA and workers' compensation. Employers must provide legally mandated benefits to all eligible employees.

Legally required employee benefits in the U.S. Federally-mandated benefits in the U.S. include Social Security, Medicare, unemployment insurance, and workers' compensation. Other statutory benefits, such as family leave, medical leave, and health insurance, only apply to qualifying employers.

Cisco. Claiming the top spot in Fortune's 100 Best Companies to Work For 2021, Cisco boasts a generous PTO policy, job swapping program and on-site health and fitness centers to make sure its employees are happy and healthy.

Based on 2023 data from the U.S. Bureau of Labor Statistics (BLS), the average cost of employee benefits account for 29.4% of the average cost per private industry employee, or $12.06 per hour, per employee. The remaining 70.6%, or $28.97, goes toward wages, for a total cost of $41.03 per hour.

The benefits package for federal employees includes medical, vision, and dental insurance, FSA accounts, life insurance, paid leave, and the Thrift Savings Plan (the government version of a 401K) with up to five percent matching.

Health benefits, dental insurance, and paid time off are the three most sought-after benefits by employees.

By law, your employer must provide Social Security and Medicare, which are mandated employer-paid benefits. The Federal Insurance Contributions Act (FICA) is a federal payroll (employment) tax used to fund Social Security and Medicare programs, which provide benefits for retirees, disabled individuals, and children.

Under the ACA, employers with 50 or more full-time employees (or the equivalent in part-time employees) must provide health insurance to 95% of their full-time employees or pay a penalty to the IRS.

Overall, the federal government is the largest employer in the US. As of September 2023, approximately 2.95 million individuals were part of the US Federal workforce.

What is the most expensive employee benefit? ›

Health Insurance: This tends to be the most expensive for both employers and employees to pay for. In 2021, KFF found that to cover a family the average was over $16,000 and for an individual employee it was over $6,000.

The finance and tech industries have the best employee benefits on average, a new study from review site Glassdoor found. The retail and food services sectors offer the worst benefits on average, the study revealed.

Employers typically pay a percentage of their employees' health insurance premiums, with the average contribution being 83% for self-only plans and 73% for family plans. Small employers may cover more of their employees' premiums than larger businesses.

Some government and railroad employees are not eligible for Social Security. American expatriates retiring in certain countries—and some retired immigrants to the U.S.—can't collect Social Security benefits.

While the BLS data is subject to change, a good rule of thumb for employers is that an employee's benefits cost anywhere from 20-40% of their salary. Small, private organizations are likely to pay less, while large, public companies typically pay more.

If you want happy employees, offer them health benefits. One of the most sought-after benefits for employees is healthcare coverage. Survey results show that 92% of employees rated health benefits as important. It's also one of the most common employee benefits, with 74% of employers offering them.

This includes, but isn't limited to, health insurance, retirement plans, paid time off, bonuses, stock options, and other perks like flexible working hours or tuition reimbursem*nt.