Employee benefits are non-wage compensation provided by employers to support the well-being of their employees. These benefits often include things like health insurance, retirement plans, paid time off, parental leave, and life or disability insurance.
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Last Updated: January 26, 2026
If an entrepreneur plans to have employees, it’s important for them to consider what benefits they’ll offer their workforce before hiring. There are lots of benefits that employers can provide, and they’re generally required to offer some benefits, while others are up to the company’s discretion and financial abilities. This guide walks through some essential facts, advantages, and disadvantages of benefits.
The benefits definition in the business world covers many different programs that employers offer employees for their health and well-being. There are some benefits that employers must offer, and others that they can offer voluntarily.
Depending on the size of a company’s workforce, an employer generally has to provide the following benefits to their employees to remain legally compliant:
Businesses with at least 50 full-time employees have to offer their employees affordable health insurance. If they don’t, they run the risk of increased tax liabilities.
Under the Family and Medical Leave Act (FMLA), employers with at least 50 employees have to allow their workers to take 12 weeks of unpaid leave per year to tend to certain medical and family needs. Employers must reinstate the jobs and benefits of employees after they return from FMLA leave.
Although it’s not required in every state, most states require employers to provide workers’ compensation benefits to their employees. Workers’ compensation benefits help ensure that employees get proper treatment, wage replacement, and disability compensation if they suffer injury on the job.
A business’s benefits definition can include benefits they must provide and benefits they volunteer to provide. There are many benefits a new or established venture can choose to offer, including:
While employers don’t have to offer any of these benefits, if they elect to do so, they’ll need to follow all applicable laws and regulations to stay legally compliant.
Offering multiple good benefits can help employers attract the best employees and keep morale and productivity high. Good benefits can also help companies retain employees. Retaining employees is an important goal for many businesses because U.S. companies spend approximately $1 trillion on employee turnover each year.
While benefits can help business owners stay legally compliant and maintain a happy workforce, they can also make running a business harder. Offering benefits is costly, and many benefits require employers to comply with multiple regulations and laws. It’s prudent for business owners to consult with legal and financial professionals to determine if they have the time and financial abilities to provide optional benefits.
Under some circumstances, providing benefits to employees is an employer’s obligation. Under other circumstances, voluntarily giving employees extra benefits is a great way for business owners to maintain their workforce and save money in the long run.
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Before an entrepreneur can start thinking about the benefits they want to offer, they need to get their business off the ground. That’s where ZenBusiness comes in. With their ZenBusiness Formation Plans, they can help anyone start a new business quickly and easily. Once the business is up and running, they offer a variety of business support services to help entrepreneurs run their companies smoothly. In fact, their Worry-Free Compliance Service helps keep a business legally compliant, handling up to two amendments per year for the company. ZenBusiness strives to make an entrepreneur’s time as stress-free as possible.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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