- Providing world class service and value for employee benefit group plans since 1987
In the US today, the need to provide employee benefits is more emphasized for large businesses compared to small businesses due to the difference in the number of active workers. Also, the larger the workforce of an organization, the easier it is to land attractive benefits packages.
That said, small business employee benefits are still very important as they play a major role in the quality of life that employees experience. For owners and employees of a small business, find out why you need a solid employee benefits program and the best benefit offerings.
An employee benefit is a bonus that employers offer employees other than their routine salary. Also called fringe benefits, the most popular employee benefits usually revolve around healthcare, life, and disability insurance, financial security, and retirement plans.
A comprehensive benefits package can result in happier, more productive employees, and this, in turn, can lead to better output numbers for a business organization. A lot of employee benefits have pre-tax options, meaning they reduce an employee’s taxable income. However, some other employee benefits, such as tuition assistance are tax-free.
For small businesses, offering an enticing benefits package is essential to attract and retain the most dedicated and skilled workers available on the job market. If your workforce is qualified and loyal, your company will likely experience positive growth.
Fringe benefits are also important for a small business because they give employees a better chance at being healthy. In addition, employee surveys show that better benefits improve job satisfaction and morale. Healthier employees with high morale levels will definitely be a plus to your establishment.
When you consider the advantages for a company, it becomes evident that giving employees a great benefits package also benefits employers themselves.
Some traditional benefits are considered to be fundamental to every citizen’s well-being, making them required of all employers, both large and small. These mandatory benefits are divided into four main categories:
Medicare is a health insurance plan that is organized by the US government. Medicare covers aging (65 years or older), retired, and disabled individuals by paying for their access to healthcare.
There are different categories of qualified medical expenses under Medicare including outpatient care, prescription drug coverage, and preventive screening.
Like Medicare, Social Security benefits individuals that are out of work for reasons such as old age, retirement, and disability. Also, Medicare and Social Security are sponsored by both employer and employee contributions according to the Federal Insurance Contributions Act (FICA).
Instead of providing Healthcare benefits, Social Security provides monthly stipends to its recipients. With Social Security, aged or disabled individuals still get an income despite being out of work.
Workers’ Compensation is offered to employees that get injured or fall sick because of their workplace duty. Workers’ Compensation pays for the cost of medical expenses and rehabilitation due to a work illness or injury.
The affected employee will also be paid a part of the income lost for the period that the illness renders them unable to work.
Unemployment insurance is an employee benefits program that safeguards employees who lose their job by granting them weekly allowances. The coverage of unemployment insurance only extends to employees who become unemployed through no fault of theirs.
Employees who are fired for valid reasons and those who resign willingly do not qualify for unemployment benefits.
When you offer employee benefits packages to eligible employees that extend beyond the usual mandatory benefits, you get to impact them more positively.
Providing health benefits for your employees is only compulsory for large employers. The law does not demand that small business owners (people with less than 50 full-time employees) offer health coverage to their current employees.
Even if health insurance is only required for large companies, up-and-coming establishments usually offer health insurance plans to their small business employees. When you offer voluntary benefits asides from compulsory ones, your employees enjoy a better work-life balance.
When providing health benefits for their employees, businesses often purchase group health insurance plans to cover most of their employees. One major advantage of group health insurance is that it costs less than individual health plans.
The function of a health insurance plan is to make healthcare more affordable by covering a percentage of the amount that an employee spends on healthcare.
Retirement benefits should be included in every small business benefits package since they prevent employees from going broke after retirement. With a retirement savings plan, employees save money in a retirement account, which can be accessed when the employee retires.
Paid time off involves paying your employees when they take time off from work, either for personal reasons or for a routine break. You can offer current employees paid time as a great way to reward them for being productive or for achieving milestones at work.
Disability coverage protects employees that develop a disability that limits them from working and earning. Long-term or short-term disability insurance plans pay the affected employee a percentage of the salary that they were earning before becoming disabled.
The purpose of life insurance is to shield the relatives or dependents of an employee if the employee dies. With life insurance, people related to your employees will have a financial safety net if the worst happens.
Vision and dental insurance are both medical insurance plans that provide coverage for only limited forms of health benefits (eyesight and oral care).
Wellness programs are employee assistance programs that are necessary for employers who want the best work-life balance for their employees. There are wellness programs that cater to the physical health, mental health, and financial affairs of employees.
When you include wellness programs in your employee benefits package, you will have staff members with impressive levels of physical fitness, mental health stability, and personal finance management.
A gym membership is a great employee benefits program to offer employees, as it encourages them to stay physically fit. Paying partially or fully for employee gym memberships reduces the financial strain faced by employees.
Some other optional benefits offerings for employees of small businesses include pet insurance, flexible work schedules, a tuition reimbursement program, and employee discounts.
Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.
Todd Taylor with Taylor Benefits gives our small business the kind of personal service we need. Insurance benefits are important to our employees and Todd helps us find a balance between benefits and value. Todd responds immediately to my phone calls & e-mails. He has even gotten in touch with me on a Sunday when we were in need of coverage answers immediately. We are very pleased with the hands-on service Todd and his staff provide.”
-Ken and Linda Orvick, Orvick Management Group, Inc.
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