How Employee Benefits Affect Paychecks
In some cases, employers provide employee benefits in addition to the salary an employee receives, and the benefit is fully paid for by the employer.
In other cases, an employer may share the cost of the benefit with an employee. The employer pays part of the cost, and the employee pays part of the cost. In these cases, the costs are typically deducted from the employees pay checks. Paycheck deduction are done to make sure the payment is made but also to make the payment process easier for the employee.
It is still advantageous to the employee to have an option to receive a benefit at a lower cost than if he or she were to purchase the benefit independently or have no benefit at all.
Oftentimes, in cases where the employee shares the cost of the benefit with the employer, employee benefits are optional, meaning the employee does not have to received and pay for the benefit. The employee could instead choose to purchase the same kind of benefit coverage on his or her own from a different provider.