Employer Contribution

Updated: 06 January 2025

What Does Employer Contribution Mean?

Employer contribution refers to the money that the business owner or employer contributes to the company’s insurance plan. Typically, the employer’s contribution matches the amount the employee pays for the benefits.

Insuranceopedia Explains Employer Contribution

Retirement packages, such as 401(k) plans, or health insurance benefits are often offered to employees with an employer contribution. Companies that establish these plans are required by law to make contributions to them.

Employer contribution limits are set by the IRS.

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