In this guide, we will explain some of the basics of keeping your employees motivated with the right benefits.
Employee benefits for small business are effective when it comes to keeping your great employees from jumping ship. A lot of small business owners believe that they cannot afford benefits. But whilst going without benefits may only boost your bottom line in the short run, it could hinder your long term prosperity. Some employees feel that there are certain benefits that they must have. Some of the must-have benefits in your company include medical insurance but a lot of job applicants demand disability insurance, a retirement plan and more. If you tell these applicants that you aren’t offering any benefits, they will leave your company and work for your competitors. This is not what you want with your best employees.
You should therefore offer the right benefits and your business will grow. When you offer your employees the benefits they value, they will be more satisfied working for you and they will miss fewer workdays. They will also have a higher commitment to meeting the goals of your company and will be less likely to quit.
Benefits basics
The law requires companies to provide certain benefits to their employees. Employees should be given time off to vote and serve on a jury. Employers should comply with the compensation requirements for employees. Employers are also required by the law to pay federal and state unemployment taxes. This provides benefits for unemployed workers. It is also required by the law for employers to contribute to state disability programs in states and jurisdictions where such programs exist.
Some employee benefits such as dental and vision plans, retirement plans, life insurance plans, health plans and paid vacations are not required by the law but some companies offer them to stay competitive in the market. Most companies provide paid holidays for their employees during New Year, Independence Day, Labor Day, Thanksgiving Day, Memorial Day and Christmas day. A lot of companies also allow their workers to take some time off without payment or even let them use their vacation days for important religious holidays.
Most full-time employees expect one to two weeks of paid vacation per year. When explaining your vacation policies to your employees, it is important to specify how far in advance requests for vacation should be made. You should also specify whether it should be verbally or in writing. No laws require employers to provide funeral leave.
Legal matters
In some cases, complications arise as soon as companies begin offering benefits. That is because key benefits such as retirement plans and health insurance fall under government scrutiny. It is also very easy to make mistakes when setting up benefits plans.
It is important to be aware that someone will notice. It won’t take much time before the IRS discovers in an audit that what you are doing does not comply with regulations. A goof can be very expensive and you can end up losing any tax benefits you have enjoyed, penalties can also be imposed. When offering employee benefits for small business, you shouldn’t leave your employees out of the plan.
