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Geographic Differences in Benefits
Benefits are usually established at the organizational level. There should be little difference in benefits at the branch-office level.
But there are some differences in:
- required benefit programs
- AND
- voluntary benefit programs
Required benefits
Required benefits are those benefits mandated by law. They include:
- Social Security
- Workers' Compensation
- AND
- Unemployment Insurance
These three programs fall into two categories:
| Federal programs | State programs |
|---|---|
| Social Security is operated by the federal government and is the same regardless of where the branch office is located. | Workers' Compensation and unemployment insurance, on the other hand, are typically state-run programs. |
State-run programs present the most fluctuation. Let's take a closer look…
If the branch office is located in a different state than headquarters, there can be differences in the:
- amounts the branch is required to contribute
- AND
- requirements and benefits from the perspective of the employee
Different states also have unique required benefits.
Example: California requires state disability insurance.
States also differ in whether they have personal income tax, the amount of personal income tax, and personal income tax deduction requirements.
Want more information? State requirements can be found at:
Voluntary benefits
Most organizational retirement and insurance programs do not vary by location within the United States.
Health and dental coverage is an exception. Not all health and dental insurance companies operate in all states. HMOs and DMOs are generally local in nature. The result is that the health and dental plan at headquarters may not be applicable to a branch office located in another state.
Memory Jogger
Which of the following benefits is most likely to be different in a branch location?