Understanding Job Benefits: Health Insurance, 401(k), PTO and More

Does the employer have to offer it

Under the Affordable Care Act, an "applicable large employer" must offer affordable coverage that provides minimum value to its full-time employees and their dependents, or it may owe a payment to the IRS. An employer counts as large if it averaged at least 50 full-time employees, including full-time equivalents, in the previous year. For this rule, the IRS defines full-time as an average of at least 30 hours a week, or 130 hours a month.

Smaller employers aren't covered by this requirement, though some offer insurance anyway.

If you're eligible for a group health plan, federal rules say the waiting period before coverage starts can't be longer than 90 days.

The terms you need to know

• Premium: the amount you pay for your insurance, usually taken from each paycheck for job-based plans. Your employer may pay part of it.
• Deductible: HealthCare.gov defines it as the amount you pay for covered services before your plan starts to pay.
• Copay: a fixed amount you pay for a covered service, such as a doctor visit.
• Coinsurance: the percentage of a covered cost you pay after you've met your deductible.
• Out-of-pocket maximum: the most you pay for covered, in-network care in a plan year. After that, the plan pays 100%. For 2026, HealthCare.gov lists the limit for Marketplace plans as $10,600 for an individual and $21,200 for a family.

A plan with a low premium often has a high deductible, and the reverse. Compare the total cost you'd expect to pay, rather than looking at the premium alone.

Covering family

Children can usually stay on a parent's plan, including a job-based plan, until they turn 26. HealthCare.gov says that's true even if they marry, move out or aren't claimed as a tax dependent.

HSAs and FSAs

These accounts let you pay for medical costs with pre-tax money.

Health Savings Account (HSA): Only available if you're enrolled in an HSA-eligible high-deductible health plan. For 2026, that means a plan with a deductible of at least $1,700 for self-only coverage or $3,400 for family coverage.

• 2026 contribution limit: $4,400 for self-only coverage, $8,750 for family coverage
• People 55 and older can add an extra $1,000
• The money stays in your account until you use it, and it goes with you if you change jobs

Health Flexible Spending Arrangement (FSA): Offered through the employer.

• 2026 contribution limit: $3,400
• Generally "use it or lose it" each year. Your employer may allow either a grace period of up to 2.5 months or a carryover of up to $680 into the next year.

A 401(k) lets you save for retirement directly from your paycheck. Similar plans include the 403(b) for schools and nonprofits and the 457 for many government workers.

2026 limits

• Employee contributions: up to $24,500
• Extra catch-up if you're 50 or older: $8,000
• Higher catch-up for ages 60 to 63: $11,250 instead of $8,000
• If you save in an IRA as well: up to $7,500, plus $1,100 if you're 50 or older

Employer match

Many employers add money when you contribute, called a match. A common design is a percentage of what you put in, up to a cap. It's extra pay on top of your salary, so it's usually worth contributing at least enough to get the full match.

Worked example: what a match is worth

Maria earns $48,000 a year. Her employer matches 50% of what she contributes, up to 6% of her pay.

Raising her contribution from 3% to 6% costs her $1,440 more a year before tax, and brings in $720 more from her employer. If she uses a traditional (pre-tax) 401(k), her contributions come out before income tax, so her take-home pay drops by less than $1,440.

Vesting

Money you put in is always 100% yours. Employer contributions may "vest" over time, meaning you only keep them after a set period. The IRS describes common schedules, including three-year cliff vesting (nothing until year three, then 100%) and six-year graded vesting (a rising share each year). If you leave before you're fully vested, you may lose some of the employer's money. Check the plan's Summary Plan Description.

Vacation, holidays and sick days

The Fair Labor Standards Act doesn't require employers to pay for time not worked, such as vacations, sick leave or holidays. The Department of Labor confirms there is currently no federal law guaranteeing paid sick leave for private-sector workers. These benefits come from your employer's policy or employment agreement.

Some states, and the District of Columbia, require covered private employers to provide paid sick leave. Rules vary on how much you earn and how you can use it, so check your state labor department.

When comparing offers, ask:

• How many days of vacation, sick leave and paid holidays do you get?
• Is it one combined PTO bank or separate?
• How fast do you earn it, and can you use it in your first months?
• Does unused time roll over or get paid out when you leave? State law may affect payout.

Family and medical leave (FMLA)

The Family and Medical Leave Act gives eligible employees up to 12 workweeks of unpaid, job-protected leave in a 12-month period for qualifying reasons, including the birth of a child, adoption or foster placement, caring for a spouse, child or parent with a serious health condition, or your own serious health condition. It covers private employers with 50 or more employees, plus public agencies and schools. To be eligible, you generally must:

• Have worked for the employer for at least 12 months
• Have worked at least 1,250 hours in the 12 months before leave
• Work at a location where the employer has at least 50 employees within 75 miles

FMLA leave is unpaid under federal law. A number of states run paid family and medical leave programs.

• Dental and vision insurance: often separate plans with their own premiums.
• Life insurance: many employers provide a basic policy, with an option to buy more.
• Disability insurance: replaces part of your income if you can't work due to illness or injury. Short-term and long-term policies are separate.
• Employee assistance programs: free, confidential counseling and referrals.
• Tuition help, commuter benefits and employee discounts.

If you lose your job or your hours are cut, COBRA lets you keep your employer's health plan for a limited time. It generally applies to employers with 20 or more employees. You'll have at least 60 days to decide whether to enroll. Coverage after job loss typically lasts up to 18 months. You may have to pay the full premium plus 2%, up to 102% of the plan's cost, which can be much more than you paid as an employee.

Losing job-based coverage also opens a 60-day Special Enrollment Period on HealthCare.gov, which may be cheaper. Compare both before you choose.

Two jobs with the same pay can be worth very different amounts once benefits are counted. On Joboru, employers post jobs directly and pay is shown when the employer states it, which gives you a starting point. Then ask each employer for the benefits summary and compare premiums, deductibles, the 401(k) match, vesting and paid time off side by side.

This is general information, not legal or tax advice.