In the United States, employers are subject to a combination of federal and state employment, payroll tax, social insurance, and benefits requirements. Unlike some countries, the U.S. does not have a single nationwide employer-sponsored benefits package.
Certain statutory programs are mandatory, while other benefits such as private health insurance, dental coverage, retirement plans, and paid time off may depend on the employer, employee eligibility, and applicable state or local law.
Mandatory Healthcare Plan
Healthcare Coverage:
Affordable Care Act (ACA) Requirements: The ACA's employer shared-responsibility provisions generally apply to Applicable Large Employers (ALEs). An employer is generally considered an ALE if it had an average of at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year.
Employer Requirement: An ALE generally must offer affordable, minimum essential health coverage that provides minimum value to at least 95% of its full-time employees and their dependents, or it may be subject to an employer shared-responsibility payment if the applicable conditions are met.
Minimum Value: For ACA purposes, a plan generally provides minimum value if it is designed to cover at least 60% of the total allowed cost of covered services and provides substantial coverage for inpatient hospitalization and physician services.
Plan Options: We provide healthcare coverage through AETNA PPO network. Employees can choose from four medical plans two of them are elegible for HSA.
Important: Healthcare coverage is not universally mandatory for every U.S. employer. Employers below the ALE threshold are generally not subject to the ACA employer shared-responsibility provisions, although other federal, state, or local requirements may apply.
Additional Resources:
For more information on ACA requirements and employer obligations, visit the IRS Affordable Care Act Employers page.
Other Mandatory Benefits
In addition to ACA requirements that may apply to larger employers, U.S. employers generally have the following statutory payroll and employment obligations:
Social Security: Employers and employees generally contribute to Social Security through payroll taxes. Social Security provides retirement, disability, and survivor benefits. For 2026, the Social Security tax rate is 6.2% for both the employer and employee, subject to the annual Social Security taxable wage limit.
Medicare: Employers and employees generally contribute to Medicare through payroll taxes. The standard Medicare tax rate is 1.45% for both the employer and employee, with an additional 0.9% employee Medicare tax applying to wages above the applicable threshold.
Federal Unemployment Insurance (FUTA): Employers generally contribute to the federal unemployment insurance system through FUTA taxes.
State Unemployment Insurance (SUI): Employers generally participate in the applicable state unemployment insurance program, with requirements and contribution rates varying by state.
Workers' Compensation: Workers' compensation is generally required under state law for covered employers, although requirements, exemptions, and coverage vary by state.
Statutory Leave: Certain employees may be entitled to unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA), subject to eligibility and employer-coverage requirements. State and local laws may provide additional leave entitlements.
Optional Benefits
Many U.S. employers offer additional benefits as part of their overall compensation package. These benefits are not universally required by federal law, although some may be subject to state or local requirements.
Common employer-sponsored benefits include:
Dental insurance
Vision insurance
Life insurance
Short-term and long-term disability insurance
401(k) or other retirement savings plans
Employer retirement contributions or matching
Paid vacation or PTO
Paid sick leave
Paid parental leave
Employee Assistance Programs (EAP)
Health Savings Accounts (HSA)
Wellness programs and other employee allowances
The availability and mandatory nature of benefits can vary based on the employee's state of employment, employer size, employment status, and applicable federal, state, and local legislation. The employee's state of employment should always be confirmed before determining the applicable statutory benefits and employer obligations.