Insurance

Reasons Small Business Owners Need to Hire Benefits Consultants

Posted by on Feb 5, 2017 in Business, Insurance, Law | Comments Off on Reasons Small Business Owners Need to Hire Benefits Consultants

You have great employees in your company and you hate training new people over and over again. So what should you do to prevent fast turnover of employees? How do you stop them from jumping to another company or competitor? For you to be competitive it is important that you provide them with strong competitive benefits.

Employee benefits are non-wage compensation which offers additional economic security to them like health insurance, retirement capital, disability benefits, educational funding and other specialized benefits. According to the law, as a small or big business owner, you are required to provide certain essential mandated benefits.

These Benefits Are Mandatory by Law:

Abiding with employee compensation requirements; withholding taxes from employees to pay and remit your own portion of taxes as well; pay state and federal unemployment taxes; contribute to short-term disability programs; adhere with the Federal Family and Medical leave Act; allow employees time off to exercise their right to vote, serve jury duty and perform military service.

These Benefits Are Not Mandatory:

Retirement plans; dental or vision plans; life insurance plans; profit sharing; sick leave and vacation time; day care and other specialized benefits. In reality, however, the majority of companies provide some of these benefits in order to be competitive in their market. It would be wise to offer similar if not better packages than your competitor offers.

Affordable care mandate of employer provided insuranceWhere Can You Get Competitive Employee Perks?

You should reach out to a licensed employee benefit management services company, in order to get the best plan for your business. They will
help you find an insurance carrier that will offer you and your employees the best plans. You can either sign up your employees individually with the consultant or you can sign up as a company for a  group health insurance collective coverage plan.

Collective coverage leads to a lower insurance premium because the peril or risk is distributed among the employees. Another advantage is there is no health examination needed. All pre-existing conditions will be waived and included in the coverage. Some employers even provide health insurance to the immediate family members of their employees.

If an employer doesn’t provide health insurance or you are self-employed and you decide to buy your own insurance, most often you will be subjected to a medical examination before approval and depending on the coverage, many pre-existing illnesses will not be covered. These premiums are also more costly because you will be paying them from your own pocket.

Employee benefits management service providers also offer other services to employees. If a company doesn’t cover other benefits like retirement capital, educational funding or life insurance, a benefits services specialist can help you find individual coverage. Though, it is advised that you get group coverage with your company if available since the rates will be lower.

If you are in need of a new health insurance plan for yourself, family or employees, contact a specialist today.

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