Unemployment insurance benefits are payable under the laws of individual states from the Federal-State Unemployment Compensation Program. Employer payments, based on total payroll, contribute to the program. Workers' compensation provides benefits to workers disabled by occupational illness or injury. Each state mandates coverage and provides benefits. In most states, private insurance or an employer self-insurance arrangement provides the coverage.
Some states mandate short-term disability benefits as well.
A retirement plan. Broadly defined, a benefit plan can include other items such as bonuses, service awards, reimbursement of employee educational expenses and perquisites appropriate to employee responsibility. To keep up with competition. To foster good morale. To keep employment channels open by providing opportunities for advancement and promotion as older workers retire.