alt Hacker News>if you count employer contributions to employee heath insurance
You shouldn't.
>and employers probably shouldn't even be involved in sponsoring group health plans in the first place.
They are free to lobby for socialized medicine, but they don't because they like how the current system helps lock employees into bad jobs for any amount of healthcare.
Replies
> You shouldn't.
The correct number to use is called "total employee compensation". This includes:
1. salary
2. paid days off
3. health care benefits
4. retirement benefits
5. employer 401k contributions
6. incentive stock plans
7. taxes paid on behalf of the employee (such as the so-called employer's contribution to social security)
8. free food in the company cafeteria
9. any other benefits that cost money
The cost to employers for these benefits adds about 30% to total employee compensation.
If you're trying to understand changes in the share of income going to workers versus employers, then you must count those contributions. For the average family, employers pay $20,143 annually in premiums: https://www.kff.org/affordable-care-act/annual-family-premiu....
From the perspective of the employer, that's real money, no different than if they had paid the $20,143 directly to the employee as wages. It's not the employer's concern what happens to that money after they fork it over.