All businesses must pay Social Security taxes equal to their employees' contributions, while some businesses must also provide unemployment insurance, workers compensation, disability insurance, family and medical leave and other leave benefits to their employees, explains the U.S. Small Business Administration. Whether or not an employee is eligible for these benefits depends on the state and the size of the business.Continue Reading
The Family and Medical Leave Act requires public employers of any size and private employers of 50 or more people to offer 12 weeks of leave to care of a new child or an immediate family member or in the event of the employee's own serious health condition, informs the U.S. Small Business Administration. The employee also has the right to return to his original job within the 12-week time frame. California, Hawaii, New Jersey, New York and Rhode Island require employers to offer disability insurance, which provides partial wage replacement in the event an employee suffers an injury or illness outside of the workplace.
The Consolidated Omnibus Budget Reconciliation Act mandates that employers with more than 20 employees must provide health coverage to terminated employees, retirees and their dependents for a certain amount time, states the U.S. Small Business Administration. However, the terminated or retired employee must pay the premium on his own, according to HG.org.Learn more about HR