Offering Employer-Funded Employee Benefits

Employer funded benefits are either partially or fully funded by the employer.

In order to receive optimal benefits from the plan (common examples are pricing discounts based on the level of participation by the employees/dependents, help in the passing of discrimination testing of the 401K plan, cafeteria plan) an employer will make a contribution towards the benefit or match the employee contribution.

The value to the employer funding the benefit is better group pricing due to high participation, stronger employee deferrals in their 401K/Cafeteria plan due to the employer match and healthy employee retention due to the strong employer contribution.