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Employee Benefits
for Small/Family Businesses
Employees frequently look for
"benefits" when working for a small employer. Larger companies
frequently have elaborate employee benefit packages that are just too
costly for the smaller business. The solution can be so-called
"optional employee benefits." These low-cost benefits to the employer
can be a real attraction to employees.
What are Optional Employee
Benefits?
Optional employee benefits
are programs sponsored by the employer. Typically, they are at little
or no cost to the employer. Just as important is that the employee is
not taxed on the benefit. The best example is low-cost group
insurance coverage.
Discounted Group Insurance
Coverage
Most employees purchase many
insurance policies. Typically, these insurances include:
Automobile
Homeowners
life
disability
long-term care
As an optional benefit to employees, these and other types of insurance
coverage can be made available at discounted group rates.
How to Establish an Optional
Benefit Plan
A small business can hire an
insurance professional, at no cost to the company, to design low-cost
group policies affording excellent coverage. (The insurance salesperson
is happy to perform the services because of the potential commissions
to be earned!) The company's employees then receive material indicating
the availability of the benefit. Coverage and costs are described, and
employees are invite to call the insurance salesperson for the details.
Employees can pay for the insurance through payroll deductions. Some of
the insurance may be paid for on a pre-tax basis. These policies
frequently provide better coverage at lower rates making both the
business and its employees winners!
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