Other Benefits You Must Provide

State and federal laws require you to provide certain benefits, other than those involving time off, for your employees. The types of benefits you must provide include the following:

Workers' compensation. Every state has enacted workers’ compensation laws to protect employees against loss of income and to make medical payments required due to a work-related injury, accident, illness, or disease. In every state except Texas, workers’ compensation coverage is mandatory.
Employment taxes. You are required by state and federal laws to make payments for employment taxes on behalf of your employees.
Disability coverage. Several states have state disability programs that require anyone with at least one employee to offer temporary disability benefits to an employee who is unable to work due to illness or injury, but who does not qualify for unemployment benefits or workers’ compensation.
Health benefits. State law and the Prepaid Health Care Act may require you to make health benefits available to your employees.