Employee Benefit Packages Near Me – Premium Hawaii HI Employee Benefit Plans Provider

Tuesday, October 10, 2023 10:37 Posted by Admin
Employee benefit packages Hawaii, Employee benefit plans Hawaii, Employee benefits Hawaii

Navigating the ever-changing world of employee benefits can be a daunting task for any business owner, and in the beautiful state of Hawaii, it’s even more complex. With unique laws and regulations that govern employee benefits, it’s crucial for employers in Hawaii to stay current and ensure compliance. So, how can you create a comprehensive employee benefit packages Hawaii that attracts and retains top talent while navigating Hawaii’s unique landscape?

In this comprehensive guide, we’ll explore the ins and outs of employee benefit packages Hawaii, discussing the Hawaii Prepaid Health Care Act, Temporary Disability Insurance (TDI), key components of a competitive benefits package, and how partnering with a Professional Employer Organization (PEO) can help simplify benefits administration while providing access to affordable group rates.

Key Takeaways

  • Hawaii has specific laws and regulations for providing employee benefits, including the Hawaii Prepaid Health Care Act and Temporary Disability Insurance (TDI).
  • Employers can offer competitive packages by providing group health insurance, retirement plans, life/disability insurance, dental/vision coverage & flexible spending accounts.
  • Partnering with a Professional Employer Organization (PEO) simplifies administration while offering access to affordable rates from leading providers.

Understanding Hawaii’s Unique Employee Benefits Landscape

hawaii, oahu, diamond head

When it comes to employee benefits, Hawaii stands out from the rest of the United States. The Aloha State has specific laws and regulations, such as the Hawaii Prepaid Health Care Act and Temporary Disability Insurance (TDI), that employers must comply with when offering employee benefits. These unique requirements not only ensure that employees receive adequate coverage but also set Hawaii apart as a leader in providing employee benefits.

A comprehensive understanding of these unique laws and regulations, such as the Hawaii Prepaid Health Care Act and Temporary Disability Insurance, is necessary for crafting an effective employee benefits package in Hawaii. We will now examine these laws in detail to comprehend their influence on employee benefits.

Hawaii Prepaid Health Care Act

The Hawaii Prepaid Health Care Act (HPHCA) is a trailblazing piece of legislation that mandates private employers to provide healthcare coverage for eligible employees with minimum benefit levels and specific plan provisions approved by the Department of Labor and Industrial Relations. This coverage includes provisions for sick leave, ensuring that employees in Hawaii have access to essential healthcare services without the burden of exorbitant costs.

Compliance with the HPHCA is mandatory for employers. To be eligible for coverage, an employee must work in Hawaii for at least 20 hours a week for four consecutive weeks and their monthly wage must be at least 86.67 times the state’s minimum hourly wage. This requirement applies to each calendar year and highlights the importance of providing adequate healthcare coverage to employees in Hawaii.

Temporary Disability Insurance (TDI)

In addition to the HPHCA, Hawaii also has a Temporary Disability Insurance (TDI) mandate that provides partially paid leave for employees with nonwork-related disabilities for a maximum of 26 weeks. TDI benefits cover employees who are unable to work due to a non-work-related illness or injury, offering financial support during challenging times.

Hawaii mandates employers to provide TDI coverage exclusively through an approved plan, either through an insurer authorized to write TDI coverage in Hawaii or by applying to the state for an approved TDI plan. The TDI benefits is calculated as 58% of an employee’s average weekly wage during the prior 52-week period. The annual adjusted maximum benefit is established for this purpose..

To be eligible for TDI, employees must have worked at least 20 hours per week for 14 weeks (whether consecutive or not) in the past 52 weeks, earning a minimum of $400 during each of these weeks.

Key Components of a Competitive Employee Benefit Package in Hawaii

Beyond complying with Hawaii’s unique laws and regulations, employers should also aim to offer a competitive employee benefits package that attracts and retains top talent. Key components of such a package in Hawaii include group health insurance, retirement plans, and life and disability insurance. By offering these benefits, employers can support the overall well-being of their employees and create a more desirable workplace.

We will now delve into these key components in greater detail, discussing their contribution to a competitive employee benefits package in Hawaii. This knowledge enables employers to make informed decisions while formulating their benefits offerings.

Group Health Insurance

Group health insurance is a vital component of a competitive employee benefits package. By partnering with providers like HMSA and Kaiser Permanente, employers can offer affordable group health insurance plans with exclusive benefits and rates. These partnerships allow employees to access quality healthcare services without breaking the bank.

HMSA is the largest health insurance carrier in Hawaii. It boasts over 7,500 participating doctors, specialists and other healthcare providers across the state. HMSA group carefully plans coverage for its members. Members can access all full-service and community hospitals in the state with an HMSA plan..

Kaiser Permanente is the largest integrated medical care program in Hawaii. It has over 700 physicians and providers with 100+ specialties providing in-person care across 20+ clinics. Members of Kaiser Permanente plans benefit from 24/7 access to virtual care options and complimentary gym memberships at fitness centers statewide.

Providing such extensive group health insurance options, including wellness plans, enables employers to build a more enticing benefits package for their employees.

Retirement Plans

Long-term financial security is a significant concern for employees, and offering retirement plans, such as 401(k) plans and deferred compensation, can help address this concern. Employers can assist their employees’ future savings and exhibit their dedication to their workforce’s well-being by offering 401(k) retirement plans with company matches and discretionary contributions.

Retirement plans, such as 401(k)s, offer employees the opportunity to contribute a portion of their salary to an account that is invested in various investment vehicles. Offering these plans and encouraging employee contributions can:

  • Enhance the overall value of an employee benefits package
  • Contribute to employee satisfaction and retention
  • Help employers comply with the Hawaii Retirement Savings Program, which mandates retirement plan coverage for private-sector employees in Hawaii.

Life and Disability Insurance

Life and disability insurance are essential components of a well-rounded employee benefits package. Providing group life insurance and both short-term and long-term disability insurance can offer financial protection for employees and their families, contributing to employee satisfaction and loyalty.

HMSA offers the following insurance coverage for its employees:

  • Group life insurance coverage of 2.5 times the employee’s annual salary, with the entire monthly premium covered by HMSA.
  • $10,000 coverage for the employee’s spouse.
  • $2,000 coverage for each child.
  • Long-term disability insurance, which provides 60% of the employee’s salary in the event of an illness or injury lasting for more than 90 days. This coverage is available to employees who have been employed for at least one year.

Inclusion of life and disability insurance in an employee benefits package allows employers to showcase their commitment to the employees’ well-being and fosters a more supportive workplace.

Additional Benefits to Enhance Your Hawaii Employee Benefit Package

doctor, medical, medicine

In addition to the key components discussed above, employers can further support their employees by offering dental and vision coverage, flexible spending accounts, and paid time off and holidays. These additional benefits can help create a more comprehensive and attractive employee benefits package, contributing to employee satisfaction and retention.

We will now scrutinize these additional benefits and examine their potential to enhance an employee benefits package in Hawaii, thereby ensuring a valued and supportive workplace environment for employees.

Dental and Vision Coverage

Dental and vision coverage are valuable additions to an employee benefits package. Offering voluntary dental and vision insurance plans can help employees maintain their overall health and well-being, resulting in a happier and healthier workforce. These plans typically cover:

  • Preventive care
  • Diagnostic services
  • Treatment for dental issues
  • Regular eye exams
  • Prescription glasses or contact lenses
  • Discounts on vision correction procedures

For example, HMSA employees are eligible to receive an eye exam annually, as well as coverage for eyeglass lenses or contact lenses each year and coverage for frames every two years. By offering dental and vision coverage, employers can demonstrate their commitment to the overall well-being of their employees, creating a more supportive and attractive workplace.

Flexible Spending Accounts

Flexible spending accounts (FSAs), such as Island Flex in Hawaii, are employee benefit programs that allow employees to pay for eligible health care, dependent care, and transportation expenses with pre-tax dollars. Employees can allocate a portion of their wages to a Medical Spending Account and/or a Dependent Care Spending Account, covering their respective expenses with pre-tax income.

Offering FSAs enables employers to offer extra financial support to their employees, aiding them in better management of their out-of-pocket medical, dental, drug, vision, and dependent care expenses. This not only contributes to employee satisfaction but also demonstrates the employer’s commitment to supporting their employees’ well-being.

Paid time off (PTO) and holidays are essential components of an employee benefits package that contribute to employee satisfaction and work-life balance. Offering a competitive PTO policy and recognizing paid holidays, such as:

  • New Year’s Day
  • Martin Luther King Jr. Day
  • Presidents’ Day
  • Memorial Day
  • Independence Day
  • Labor Day
  • Veterans Day
  • Thanksgiving Day
  • Christmas Day

can help employees feel valued and supported in their workplace.

Research shows that employees who are provided with adequate time off and paid holidays are more likely to be satisfied with their jobs and less likely to experience burnout. A positive work environment and employee well-being can be fostered by employers through the provision of generous PTO policies and recognition of paid holidays.

Navigating Benefits Administration in Hawaii

Managing employee benefits in Hawaii can be challenging due to the state’s unique laws and regulations. Employers must effectively manage eligibility tracking, enrollment, and communication of benefit information to ensure compliance with Hawaii’s unique regulations. Failure to do so can result in penalties, daily fines, and increased administrative burdens.

We will now discuss the best practices for navigating benefits administration in Hawaii, encompassing eligibility tracking and enrollment, along with communicating benefit information to employees. By mastering these aspects of benefits administration, employers can ensure a smooth and compliant process while providing their employees with the support they need.

Eligibility Tracking and Enrollment

Tracking employee eligibility and managing enrollment are crucial aspects of benefits administration in Hawaii. Employers should have systems in place to:

  • Track employee eligibility for benefits
  • Manage enrollment and elections
  • Notify newly eligible employees
  • Implement systems to track hours and enroll employees
  • Adhere to Hawaii Employment Security Law
  • Correlate benefits to eligibility guidelines
  • Adhere to guidelines for public employee collective bargaining.

Efficiently managing eligibility tracking and enrollment ensures that employees receive the appropriate benefits and helps employers maintain compliance with Hawaii’s unique regulations. By following best practices for managing employee eligibility and enrollment, employers can create a more streamlined and effective benefits administration process.

Communicating Benefit Information

Providing clear and concise information about available benefits and any associated costs is an essential aspect of benefits administration. Employers should ensure that employees have access to all necessary information about their benefits, allowing them to make informed decisions about their coverage.

Regular communication about benefits, including any changes to coverage, cost, or eligibility, is crucial for maintaining employee satisfaction and engagement. Employers should provide year-round communication of employee benefit information to keep employees informed and up-to-date on their options.

Partnering with a Professional Employer Organization (PEO)

One way to simplify benefits administration and gain access to affordable group rates is by partnering with a Professional Employer Organization (PEO) like ProService Hawaii. By working with a PEO, employers can streamline benefits administration and offer comprehensive employee benefits packages at more cost-effective rates.

We will now examine the advantages of collaborating with a PEO and how this partnership can assist employers in Hawaii to manage the complexities of benefits administration, while simultaneously providing the necessary support to their employees.

Simplifying Benefits Administration

PEOs, such as ProService Hawaii, can handle eligibility tracking, enrollment, and benefits questions on behalf of businesses, allowing employers to focus on their core operations and growth. By taking on the administrative burden of benefits administration, PEOs can help employers save time and resources while ensuring compliance with Hawaii’s unique regulations.

In addition to simplifying benefits administration, PEOs can also provide access to exclusive benefits and rates from premier healthcare providers, enabling employers to offer comprehensive employee benefit packages at a more cost-effective rate.

Access to Affordable Group Rates

Collaboration with a PEO allows employers to avail exclusive benefits and rates from leading healthcare providers like AmeriHealth and Paychex. This access allows employers to provide comprehensive employee benefit packages at more affordable rates, attracting and retaining top talent in the competitive job market.

PEOs can negotiate affordable group rates by leveraging their collective bargaining power and the large number of employees they represent. By working with a PEO, employers can offer their employees Fortune 500 level benefits at a reduced cost, demonstrating their commitment to employee well-being and creating a more attractive workplace.

Learn more about employee benefits packages in Honolulu.

Relevant Statistics

  • Over 95% of companies in Hawaii offer health insurance as part of their employee benefits package.
  • Approximately 80% of Hawaii employees receive retirement plans such as 401(k) or pension schemes from their employers.
  • On average, employees in Hawaii receive 12 days of paid vacation per year.
  • About 70% of companies in Hawaii offer flexible work arrangements, including remote work options or alternative schedules.
  • The average employer contribution towards a Hawaii employee’s health insurance premium is 75%.

General Facts

  • Hawaii employee benefits packages typically include health insurance coverage.
  • Many companies in Hawaii offer retirement plans, such as 401(k) or pension options, as part of their benefits packages.
  • Paid time off, including vacation and sick days, is a common feature in Hawaii employee benefits packages.
  • Some employers in Hawaii may provide additional perks like flexible work schedules or remote work options.
  • Employee assistance programs, which offer support services for personal or work-related issues, are often included in Hawaii employee benefits packages.


In conclusion, creating a comprehensive employee benefits package in Hawaii requires understanding the state’s unique laws and regulations, offering key components such as group health insurance, retirement plans, and life and disability insurance, and providing additional benefits like dental and vision coverage, flexible spending accounts, and paid time off and holidays. By partnering with a PEO like ProService Hawaii, employers can simplify benefits administration and gain access to affordable group rates, ensuring their employees receive the support they need.

With the right approach and a commitment to employee well-being, employers can navigate the complexities of benefits administration in Hawaii and create a competitive employee benefits package that attracts and retains top talent, while fostering a supportive and positive work environment.

Frequently Asked Questions

What are the health benefits for Hawaii State employees?

Hawaii State employees are eligible for a range of health benefits, including medical, chiropractic, prescription drug, dental, vision and life insurance, through the Hawaii Employer-Union Health Benefits Trust Fund (EUTF).

What is a standard benefit packages for employees?

Employee benefits packages typically include medical insurance, dental and vision coverage, life insurance, retirement planning, stock options, training opportunities, and more. These are designed to attract and retain talent, enhance job satisfaction, and foster a positive work environment. Federal and state laws also require employers to provide certain employee benefits such as COBRA, FMLA, and minimum wage standards.

What are the 4 major types of employee benefits?

The four major types of employee benefits are medical, insurance, paid time off and retirement. These are commonly known as traditional benefits, with several nontraditional benefits also being available to enhance company culture and improve employee engagement and retention.

How long do you have to work for the state of Hawaii to get a pension?

To get a pension from the state of Hawaii, you must have at least 10 years of credited service and be 62 or older when you leave your job. Retiring early with full benefits is also possible after 25 years of service and reaching age 55.

What are the unique laws and regulations regarding employee benefits in Hawaii?

Hawaii has unique laws and regulations for employee benefits, such as the Hawaii Prepaid Health Care Act and Temporary Disability Insurance (TDI), that employers must comply with.

Written by Todd Taylor

Todd Taylor

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.

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