Employee Benefits Package in Utah
In 2025, Utah’s unemployment rate hit 3.3% (well below the national average of 4.3%), and in 2024, its gross domestic product (GDP) growth surged to $300.9 billion.
There’s no denying that Utah employees are earning their pay. But what about those benefits that go beyond a simple paycheck? What are the standards for employee benefits in Utah and what additional benefits can help bring in top talent? Here, we take a closer look at the employee benefits for Utah, and what you can do to ensure that you’re giving your Utah-based employees the compensation they deserve—and a benefits package that helps you stay competitive as a company.
But first, let’s take a look at what defines an employee benefit.
Employee Benefits: Definition
What are employee benefits? Broadly speaking, employee benefits are any form of compensation other than wages provided by an employer to an employee. Benefits can carry any amount of monetary value or no monetary value at all, and may or may not be subject to taxation.
Of course, there’s a difference between ‘definition’ and ‘meaning,’ and when you discuss employee benefits in Utah, it is fairly well understood that you’re talking about health insurance, paid time off, and pension plans. These are generally considered the standard in employee benefits; full-time positions that fail to offer these benefits may have a difficult time attracting and retaining valuable employees.
At the same time, many companies take their benefits further by expanding or improving upon basic insurance benefits (such as providing life insurance and disability insurance or discounts on home and auto insurance). Others take a more comprehensive approach, offering things like caregiver support, work-from-home flexibility, adult education and training options, financial assistance, and physical and mental health benefits programs. And of course, there’s nothing wrong with a top-tier employee-bonus program.
All of these types of benefits you offer grouped together are what’s referred to as your employee benefits package.
Employee Benefits Package: Utah Requirements
Some full-time employee benefits are so common that they seem as though they must be legally mandated. But the truth is that federal and state governments tend not to get too involved in dictating the kinds of non-wage compensation employers are required to offer.
The US Bureau of Labor Statistics identifies five “legally required benefits” applicable to businesses that operate anywhere in the US (including Utah).
These benefits include:
Health Insurance
The Affordable Care Act (ACA) enacted in 2010 made it a legal requirement that any US organization employing 50 or more full-time employees must provide sufficient, affordable healthcare coverage as a benefit.
Medicare and Social Security Contributions
Medicare and Social Security are federally mandated plans that help provide for aging US citizens after they’ve left the workforce. Employers are required to make a specific amount of contributions to these benefits programs.
Workers’ Compensation Insurance
Workers’ compensation is a form of insurance purchased by the employer to help protect and support their employees should any of them become injured or ill in a situation related to their job. This form of insurance can help cover the costs of medical care, treatment, rehabilitation, paid leave, or replacement income.
Unemployment Insurance
Employers and employees must pay towards unemployment compensation insurance. If an employee involuntarily loses their job, unemployment insurance will provide them with short-term partial income replacement.
Family and Medical Leave
The Family Medical Leave Act (FMLA) requires that US businesses with 50 or more employees provide their workers with up to 12 weeks of unpaid leave, provided the employee has been employed by the company for 12 months and has worked at least 1,250 hours before the start of the paid leave. This helps protect the job security of employees who may find themselves having to take extra personal time to recover from illness or support family members.
Employee Benefits Package: Utah Employee Expectations
With so little in the way of legal requirements, how can you be sure that you’re offering competitive employee benefits in Utah and meeting your workers’ expectations? Consider a few statistics:
- Utah has the highest percentage of people covered by group health insurance of any state: approximately 60% of residents.
- 89% of Utah employers offer time off for vacation.
- Approximately 37% of Utah employees work remotely.
When it comes to employee benefits, Utah stands out as an example of attractive compensation packages. But ensuring that your workforce remains loyal and engaged for years to come means taking things beyond what’s expected.
If you’re trying to get a better idea of what your employees and prospective hires value in a benefits package, why not ask them? Employee surveys supplemented by competitor research can provide the insight you need to give your workforce the non-wage compensation they crave.
After all, Utah has among the most hardworking and dedicated employees in the country — if you can give them the right employee benefits, Utah workers will be an invaluable asset in helping your business reach its goals.
The Benefits of a Great Employee Benefits Package
When you create a great employee benefits package, your employees and your company reap the rewards. Here are some of the advantages of offering competitive benefits in Utah:
- Improved talent attraction and retention. Offering comprehensive benefits helps companies attract and keep top talent. For example, research shows that focusing on employee wellbeing with great benefits packages can lead to higher employee satisfaction and reduced turnover. Also, a report by Mercer found that organizations with a strong “culture of health” (which benefits are a big part of) had turnover rates 11 percentage points lower than those without.
- Enhanced productivity and performance. When employees feel secure in their health, financial future, and work-life balance, they tend to perform better. Research has found clear links between well-being investments and business performance. For example, companies providing financial wellness support reported improvements in productivity, morale and engagement.
- Reduced absenteeism and cost savings. Benefits like health insurance, wellness programs and flexible work support reduce absenteeism, burnout, and the indirect costs of disengaged employees.
- Strengthened company brand and reputation. A good benefits package signals to employees, prospects and the community that a company values its people — improving your brand, market positioning and competitiveness.
- Better company performance. When your employees are cared for and performing well, your company does better too. In one study, researchers found that when a company went up only one point in employee happiness, their profits still increased from $1.39 billion to $2.29 billion annually.
What Should I Include in a Benefits Package?
Every company has different needs, so you’ll want to tailor your benefits package for your employees. Here are a few perks you could include in a well-rounded benefits package:
- Health, dental & vision insurance. Include employer-sponsored medical coverage (or contributions toward it), plus options for dental and vision plans. These are foundational and among the most expected benefits.
- Retirement/-Savings plan (e.g., 401(k) or pension) + employer match. Offering a retirement savings vehicle plus a company-match (or contribution) helps employees plan for the long term and demonstrates commitment to their future.
- Paid time off (PTO), holidays, sick leave, family leave. Flexibility and rest opportunities matter. Including vacation days, sick leave, paid holidays and parental/adoption/family leave improves work-life balance.
- Disability, life insurance and other risk-protection benefits. Short-term disability, long-term disability, life insurance (and possibly AD&D) build financial security for employees and their dependents.
- Wellness, mental-health support & employee assistance programs (EAPs). Wellness programs (physical and mental health), EAPs, and preventive care options are increasingly important for employee well-being and retention.
- Flexible work arrangements & remote/hybrid options. Flexibility in work location or hours is a modern benefit that many employees value highly — especially in competitive markets.
- Learning & development / professional growth opportunities. Benefits that support ongoing education, certifications, conferences, or skill-building signal investment in the employee’s career — not just their current job.
- Family-friendly benefits (childcare support, parental leave, fertility/adoption assistance). Especially important for employees with caregiving responsibilities, these benefits enhance loyalty and reduce stress-related turnover.
- Lifestyle perks & non-traditional benefits (commuter/transport subsidies, pet insurance, home office stipend, employee discounts). While not core, these supplementary benefits help differentiate your offering and appeal to individual employee values and life stages.
Start Creating a Great Utah Employee Benefits Package
Ready to help support your employees and keep your business competitive in Utah? Look no further than Blackrock Benefits. We’ll help you create a benefits package that your employees will love.
