Benefits offered by an employer that employees pay for themselves through payroll deduction.
Voluntary benefits are employer-offered benefits where employees pay the full premium — but at group rates that beat what they'd pay individually. Common categories: critical illness, accident insurance, hospital indemnity, pet insurance, identity theft protection, legal plans, supplemental life insurance.
For employers, voluntary benefits add to total compensation perception at zero direct cost. For employees, the group-rate access can be meaningful — pet insurance at $20/month via voluntary benefit can match individual-market quotes 30-50% higher.
PEOs typically maintain robust voluntary benefit menus alongside core benefits.
Benefits offered by an employer that employees pay for themselves through payroll deduction.
Voluntary benefits are employer-offered benefits where employees pay the full premium — but at group rates that beat what they'd pay individually.
Most PEO buying decisions touch several related concepts at once. Voluntary benefits typically comes up alongside the other terms in this category. Closely related terms include Group health insurance, Cafeteria plan (Section 125).
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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