Benefits are an ever-increasing portion of employee compensation costs. Having a competitive benefits package is vital to recruiting and retaining the best employees. The best benefit programs are those that align with an organization's business strategy and compensation philosophy. The ever-rising cost of healthcare benefits was a major impetus to the enactment of far-reaching healthcare reform law, with provisions taking effect through 2018. Flexible benefit/cafeteria plans provide a means for employers to offer employees a customized benefit package while saving taxes for both the employer and employees. Certain major benefits such as Social Security, Medicare, workers' compensation, and unemployment compensation are mandated by law. While numerous other benefits are voluntary, once benefits are provided, complex compliance requirements come into play.