For many employers, offering up an excellent benefits package is one way to keep employees sticking around or entice new ones. Some companies think they can’t afford a benefit package, while it may look good for the budget in the short term, long term you could be harming your business by missing out on talented employees because you are not offering a competitive benefits package.
Many of the ideal candidates believe they are entitled to specific perks including medical insurance, but many job applicants also like to see a retirement plan and disability insurance.
Offering these types of benefits will get the right candidates through the door and help boost your business. By giving your employees the benefits they value, they’ll be more content, miss fewer days of work, be less likely to quit, and have a stronger desire to be a team player with a willingness to meet company’s goals.
Here are some things you must know about offering your employees a benefits package.
Know Your Benefit Basics
The law mandates all employers to provide employees with particular benefits, such as:
- Allow employees the time off to vote, serve on a jury and perform military service.
- Follow all state workers’ compensation requirements.
- Deduct FICA taxes from employees’ paychecks and contribute your own portion of FICA taxes, providing employees with retirement and disability benefits.
- Providing benefits for unemployed workers by paying into state and federal unemployment taxes.
- Pay into state short-term disability programs in states that have them.
- Follow the Federal Family and Medical Leave (FMLA) regulations.
You do not have to provide:
- Individual retirement plans
- Group health insurance
- Dental or vision insurance plans
- Life insurance plans
- Paid vacations, holidays or sick leave
The truth is though most companies offer some or all of these benefits to stay competitive.
In group health insurance the size of the group plays a critical role in the insurance policy benefits. Coverage, provided for the smaller groups has restrictions, and they have more detailed underwriting for different members within the group. However, they have simple questions for understanding the status of the subject.
Call Blake Insurance Group to see if you qualify for the Small Business Health Care Tax Credit. You could be eligible for the Small Business Health Care Tax Credit that may be worth up to 50% of the costs you pay for your employees’ premiums (35% for non-profit employers).