The Social Security tax is a percentage of gross wages that most employees, employers, and self-employed workers must pay to fund the federal program The Social Security tax is a percentage of gross wages that is payable by most employees, employers and self-employed workers in order to fund the federal programme.

Payroll taxes are the primary source of funding for Social Security and Medicare. Employees are required to contribute 7.65 percent of their gross take-home pay to these programs. Federal legislation requires company to provide a matching contribution. (The Social Security tax rate for those who are self-employed is 12.4 percent.) The initial 6.2 percent of the tax that is allocated to the Social Security fund is assessed solely up to a specified income ceiling, which in 2023 is $160,200. Any income exceeding this limit is not subject to Social Security tax. Currently, there is no ceiling on the 1.45 percent Medicare tax.

The function of unemployment insurance is to provide a basic income for those workers who become unemployed through circumstances beyond their control.

The responsibility for administering the unemployment insurance programme is devolved to individual states, as set out in the 1935 Social Security Act. The federal guidelines are relatively permissive, with the exception of a few states (Alaska, Pennsylvania, and New Jersey) that require employees to contribute a nominal fee. In most cases, employers are responsible for covering the cost of their employees' unemployment insurance.

Workers' compensation serves to safeguard employees who sustain injuries or experience illnesses in the workplace, irrespective of the presence of negligence on the part of either the employee or the employer. This system covers medical expenses, offers disability payments as a form of income replacement for permanent injuries, and allocates lump-sum benefits in the event of death.

Certain states allow for the option of private insurance, that is, if an organization can substantiate its financial stability to state regulatory bodies, it may opt for self-insurance. Conversely, other states mandate contributions to a state-administered fund, while some permit a combination of state and private insurance options. Typically, contributory systems are experience-rated, meaning that the frequency of claims filed by employees against a company influences the insurance premiums. Consequently, the implementation of effective workplace health and safety measures is financially advantageous.

The Family and Medical Leave Act (FMLA) grants eligible employees of qualifying employers the right to take unpaid, job-protected leave for designated family and medical purposes. Qualifying employers include private-sector entities with 50 or more employees, as well as all public sector employers. Under the FMLA, eligible employees are entitled to a maximum of 12 weeks of job-protected, unpaid leave within a 12-month period for qualifying family and medical reasons, as well as for addressing qualifying exigencies.

Additionally, the Act allows for up to 26 workweeks of unpaid, job-protected leave within a single 12-month period for Military Caregiver Leave. Qualifying circumstances for leave include the birth of a child, the management of a serious or chronic personal illness, or the provision of care for an immediate family member suffering from a serious or chronic illness.