Answer to Question 1
Answer: The U.S. government established programs to protect individuals from catastrophic events such as disability and unemployment. Legally required benefits are protection programs that attempt to promote worker safety and health, maintain family income streams, and assist families in crisis. The cost of legally required benefits to employers is quite high. As of September 2012, U.S. companies spent an average of 5,000 per employee annually to provide legally required benefits. Human resources (HR) staffs and compensation professionals in particular must follow a variety of laws as they develop and implement programs. Legally required benefits historically provided a form of social insurance. Prompted largely by the rapid growth of industrialization in the United States in the early 19th and 20th centuries and the Great Depression of the 1930s, initial social insurance programs were designed to minimize the possibility that individuals who became unemployed or severely injured while working would become destitute. In addition, social insurance programs aimed to stabilize the well-being of dependent family members of injured or unemployed individuals. Furthermore, early social insurance programs were designed to enable retirees to maintain subsistence income levels. These intents of legally required benefits remain intact today. The most substantial legally required benefits include various kinds of Social Security benefits, unemployment insurance, and workers' compensation.
Answer to Question 2
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