Employer Contribution

Published: | Updated: December 3, 2017

Definition - What does Employer Contribution mean?

Employer contribution is the money the head or owner of a business pays into the company insurance plan. The employer contribution usually matches the amount the employee pays for the benefits.

Insuranceopedia explains Employer Contribution

Retirement packages like 401(k) plans or health insurance benefits are often offered to employees with an employer contribution. Companies who establish these plans must make some contribution to them by law.

Employer contribution limits are set by the IRS.


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