There isn’t a “one-size-fits-all” answer to this question as it can depend on a number of factors, including company culture. There are a few key things to consider if you are facing this question.

• What is your company’s position on employees contributing for other benefits? If your organization covers most costs of other benefits, your company likely will want to cover most, if not all, of the cost for statutory benefits. Conversely, if your employees typically contribute to their other benefit offerings (especially disability insurance costs), your company will likely want to require employees to contribute the maximum amount allowable for statutory coverage.
• How many employees do you have working in a state covered by a statutory plan and what is the cost for these payroll deductions? Sometimes employers choose to cover the cost of statutory disability or PFML premiums when they only have one or two employees working in a state because it is more cost effective than setting up the payroll deductions.
• What is the full cost of statutory benefits? This may depend on how many total employees are in your organization and how many employees work in states with statutory coverage. If your organization only has a handful of employees in statutory states, it might make sense for your organization to cover these costs.

While there is not necessarily a clear-cut answer to this question, it is important to document your approach. If you decide to cover the costs of these coverages and later wish to require employee contributions, employees must be provided with sufficient notice before setting up payroll deductions. Lastly, it’s best practice to handle employee contributions consistently for equitable treatment across your employee population.