Employee benefits are any forms of compensation or perks offered to employees on top of their base salaries. This can include retirement plans, healthcare insurance, vacation, and paid time off. The premium necessary to cover the benefits is paid on a monthly basis by both the employer and the employee.

Various factors will determine how a specific benefits package will look like. Some employee benefits are required by law, and some are “nice to have” and are left up to the employer. In addition, the level of benefits a particular employee receives can be dictated by the size of the company they work for, whether they work part-time or full-time, and whether they are salaried or paid on an hourly basis.

Most of the time, employer benefits premiums are tax-deductible.