While it is an expense, the cost of not providing enough benefits can be high; it may mean trained staff move on to companies, possibly your competitors, where they may feel more secure. Especially for small firms, this presents a very high potential cost.
In reality, most any size company can provide a benefit plan, you just need one that fits your needs and budget. At Cornerstone Financial Group, we’re specialists in helping you design and implement quality benefit programs that are affordable and attractive. Instead of a one-size-fits-all approach, we can design programs that specifically fit your needs.
As your company grows, we can expand the employee benefit plans, too.
It is a well-known phenomenon that employee benefits engender more loyalty than additional financial compensation. Furthermore, the government provides tax breaks to encourage companies to provide fringe benefits.
Especially for small firms with limited budgets, the key is to provide the right kind of benefits. Our specialists work with you to design a plan that meets the specific needs of your company and your workforce.
There are laws and regulations that employers must adhere to when planning or administering employee benefits.
First, there are several basic benefits that you as an employer must provide by law. These mandated benefits include social security and Medicare, worker’s compensation, unemployment insurance, family and medical leave and COBRA health care benefits.
Also, you might be subject to a requirement to provide health care depending upon the number of employees on your payroll. (Talk to a professional to determine any additional requirements that may apply to you.)
Beyond those, most benefits are optional.
Retirement plans are an extremely effective tool to help you retain employees. Many small firms have realized that so now have a retirement plan. However, it is critical to understand that having a retirement plan brings the responsibility to manage employee money very carefully. But as a busy business owner, it’s not always easy to find the time to do this right.
Recently this has become even more important. There has been a growing trend toward litigation against retirement plans. Originally, the lawsuits were mostly against large plans. Over the past few years, however, plans of all sizes, including small ones, have been targeted as well.
When you risk getting sued for a misstep, it’s critical to get experienced, professional help to ensure you do it right. Plan administration must be handled according to regulation or you can risk potential liability. Plans that include profit-sharing are even more complex, and present even more opportunity for error.
Traditional Defined Benefit Pension Plans.
Defined Contribution Plans.
Roth 401(k) Plan.
Health care coverage is extremely important to most employees, so it’s worth your while to provide this critical benefit. With high costs and a rapidly changing landscape, however, there’s nothing simple about providing health care benefits anymore.
That’s why getting a specialist’s input when planning is smart.
You’ll need to choose between two different strategies—fully insured and self-insured.