Some employee benefits for small employers are mandatory such as Workers Compensation Insurance, Social Security, and Medicare Payments as well as Sick Leave.  Still many are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These types of employee benefits include Housing (employer-provided or employer-paid), Group Insurance (health, dental, life, etc.) Disability Income Protection, Retirement Benefits, Daycare, Tuition Reimbursement, Vacation (paid and non-paid), Profit Sharing, and other specialized benefits.

Employee benefits offer significant tax considerations to the business. Each business must research and weigh the costs of different benefits and packages offered against what competitors are offering to attract and retain top talent. If implemented properly the cost to the employer can be small and in some cases actually make them money.