Employee Benefits

Health insurance helps pay for doctor visits, hospital stays, prescriptions, and other medical care. Without it, a single emergency room visit can cost thousands of dollars. Many employers pay a portion of the monthly premium — what you pay is deducted from your paycheck before taxes.

Medical bills are the leading cause of personal bankruptcy in the United States. There is no federal penalty for being uninsured (the ACA's individual mandate penalty was reduced to $0 in 2019), though some states — including California, Massachusetts, New Jersey, Rhode Island, and Washington D.C. — do impose their own penalties. Regardless of whether it's legally required where you live, going without coverage is a serious financial risk. A single emergency room visit averages $1,000–$3,000 before any treatment.

A 401(k) is a retirement savings account offered through your employer. You contribute a percentage of your paycheck before taxes — which means you pay less in taxes now. Many employers will match your contribution up to a certain percentage. That match is free money.

Someone who starts contributing at 22 will retire with dramatically more than someone who starts at 32 — even if they contribute less total. Time in the market is everything. Never leave a 401(k) match on the table.

PTO is paid time away from work — vacation, personal days, and sometimes sick time all rolled into one bank of hours. The number of days matters, but so does the policy: can you roll unused days over into next year? Do they pay out unused PTO if you leave?

10 days of PTO on a $50,000 salary is worth about $1,923. 15 days is worth $2,885. PTO is real compensation — calculate it that way.

Dental insurance covers preventive care (cleanings, X-rays), basic procedures (fillings), and major procedures (crowns, root canals) — usually at different coverage levels. Preventive care is often 100% covered. Cleanings twice a year are typically free.

A single root canal without insurance can cost $1,000–$1,500. Two annual cleanings alone are worth $300–$500 in coverage.

Vision insurance typically covers an annual eye exam and an allowance toward glasses or contact lenses. It's usually inexpensive — often $5–$15/month — and easily pays for itself with one pair of glasses per year.

Even if you have perfect vision today, annual exams can catch early signs of conditions like glaucoma or diabetes. Don't skip it.

An HSA is a special savings account for medical expenses. You contribute pre-tax dollars, use them tax-free for qualified expenses, and any unused balance rolls over every year and can even be invested. It's only available if you have a High Deductible Health Plan (HDHP).

An HSA is triple tax-advantaged — contributions, growth, and withdrawals for medical expenses are all tax-free. Many financial experts call it the best savings account available.

Many employers offer additional perks beyond core benefits. These vary widely by company and are increasingly used to attract talent. Always ask — and always calculate their dollar value.