Offering a good benefits package will keep your good employees from jumping ship. The common mistake small businesses make is the belief that they are not capable of giving benefits to their employees. The chance of your business to sustain longer prospects of success will be lost as this is good only for the short term. Denying the employees of benefits like retirement, disability, and insurance plans will dampen their spirit and may convince them to leave your business — or worse, if they learned that you don’t have benefits to offer, don’t expect you’ll get them on board.
Offering your employees the right benefits due to them will leave them happy, improve their performance, and make them loyal and dedicated to work. If your employees are satisfied, you can be assured that they’ll be motivated. The assurance that your business will be progressive in the future is greater — employees are your weapons on conquering stiff competition and will surely give you a certain advantage. The following will help you understand the basic benefits for your employees.
The law requires that you must provide the following benefits:
a. Time to vote, serve on a jury and when needed, perform military service.
b. Act per worker’s compensation provision.
c. Payment of taxes after deduction from their salary including your share so they can avail of retirement and disability benefits.
d. Payment of unemployment taxes both state and federal.
e. Contribution to a short term disability program if such programs are found in your state.
f. Confirm with Federal Family and Medical Leave (FMLA).
Some benefits you are not required to provide but also offered by others to boost employee productivity:
b. Dental and vision
c. Life insurance
d. Vacation, holiday and sick paid leaves
Some employers provide paid holidays and allow their employees to request leave without pay and use vacation days for religious holidays. It is highly suggested that you consult a lawyer or a benefits consultant first to avoid complications. Not complying with regulations can make you lose tax benefits and you can be penalized.
a. Shouldering the entire expenditures of employee benefits.
b. Hiding known employers.
c. Poor paperwork.
d. Withholding information to employees on the cost of their benefits.
e. Providing unnecessary benefits.
One of the most attractive benefits you can offer to employees is health insurance. It is often the most sought after and highly requested by job applicants.
Traditional coverage. The donor will be paid directly or it will be reimbursed to the employees of the certain cover amount as per their chosen company.
Managed care. A prepaid health care management where employees must avail of facilities and doctors approved by HMO or Health Maintenance Organization while with PPO, the insurance company negotiates the discount with the doctors and hospitals. The employee can choose from a list of approved doctors then they pay the office visit, the remaining is shouldered by the insurance.
Self-insurance. When you decide to shoulder the payment to all the claims, employees will assist in paying the premiums. This will allow you for a wide control over planning. This will make you liable for claims but you can set a limit using stop-loss insurance.
Archer Medical Savings Account. If your employees fall under 50 or fewer employees, this type is funded with employee’s pre-tax dollars.
The mounting price of health insurance force businesses to reduce their benefits. Insurance companies that cater to small businesses charge very high payments, adding to requiring wide medical information on each employee. When someone becomes gravely sick, they may reject the renewal of policy later.
Tips on Avoiding Such Complications
a. Evaluate their prices and check references and history.
b. Verify the plan’s underwriter and ratings.
c. Check if it does not violate state regulations.
d. Inquire about the agent on commission percentage or other incentives they get.
e. Ask for assistance. There’s nothing wrong if you research a little bit from other business owners about the company, complaints, or reputation. If you have doubts or uncertainties, get in touch with your state’s insurance bureau or the Labor Department Office of Investigations.
Your employees are a huge part of your business and providing them benefits should be just as important to you, as it is to them.