How Much Do Employee Benefits Cost on Average?
We can use statistics from the U.S. Bureau of Labor in order to get an idea of what different employee benefits cost on average.
The bureau reported that the employer costs for civilian employees average about $38.91 per hour in June 2021. Wages make up about 69% of total compensation, and benefits come out at 31%.
Salaries and benefits are a huge expense for companies. In the United States, it’s been estimated that salaries account for 1 – 2 times the base salary range, with an employee costing between $125K-$140K when you include all of their benefits!
To help you understand better about how much your plan will cost, let’s take a look a how much some of the most necessary and popular benefits will cost:
According to a recent study by the Kaiser Family Foundation, employers pay an average of $7,188 for single and family coverage annually. The deductible (the amount you need before your health care kicks in) is also considerable – averaging out at about 1/2 million dollars!
With worker’s compensation insurance, you can rest easy knowing that your employees are taken care of in the event they’re injured on the job. The formula for calculating this cost is complicated and includes payroll information as well as X-Mods, which represent benchmarking classifications to how risky the industry or circumstances might be.
Disability coverage is a good way to protect employees who may not work as much due to illness or injury. The employer can pay for the benefit, share in its cost with an employee who has it available through their employment contract.
Life insurance benefits can help in replacing the income of your employees if they pass away. Adding life coverage to a group plan is an attractive option for both the company and its workers since it’s relatively inexpensive.
Retirement and Employee Stock Purchase Plan
The company will match up to some certain point the money that an employee contributes to their retirement fund. The most common percentage matching range for this is 2-6%.
Contributions to FICA
FICA is an acronym for Federal Insurance Contribution Act, and it sets regulations related to Social Security or Medicare taxes. Employees are required by law in America to pay these contributions, which will be equally shared with their employer; both parties must pay around 7.65% on every salary they receive.
Unemployment insurance is a great way to make ends meet while you search for another job. If your state’s requirements are met, unemployment will pay up until they’re not replaced by new income.
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