What Are Employee Benefits
Before we get into the nitty-gritty of employee benefits , lets define the term:
Employee benefits are any kind of tangible or intangible compensation given to employees apart from base wages or base salaries.
This employee benefits definition points to examples of job benefits such as insurance , stock options and cell phone plans. But, employee benefits can be much more than these, from training opportunities to startup perks .
Basically, any kind of non-wage gain attached to an employees position can be classified as an employee benefit, be it mandatory or voluntarily given by an employer.
Required Staff Benefits Include:
Employer benefit requirements depend on the relevant labor laws applicable to the location of your business. In the United States for example, many requirements, including offering time off to vote and providing workers compensation, depend on laws that vary by state. There are however some nation-wide required benefits hedged under the U.S. Department of Labors federal labor laws.
These include but are not limited to:
- Caregiver and parental leave. The Family and Medical Leave Act requires those employing 50+ people to provide up to 12 weeks of unpaid time off for employees becoming parents, caring for sick loved ones, or suffering from an illness themselves.
- Retirement security. While offering retirement plans isnt a requirement itself, employers who choose to offer these benefits must abide by the protections enacted by the Employee Retirement Income Security Act .
- Workplace safety. The Occupational Safety and Health Act mandates employers provide a workplace without recognized and serious hazards.
- Health insurance benefits. The Affordable Care Acts shared responsibility provisions require some large employers to provide insurance.
- Continued health insurance benefits. The Consolidated Omnibus Budget Reconciliation Act requires employers to give employees the option of continuing their participation in the companys group health plan for set time frames after they lose, quit, or alter their job in a way that would otherwise cause them to lose health coverage.
What Are Considered Good Retirement Employee Benefits
A 401 with an employer matching program is a great way for employees to save for retirement. Some employers match your retirement contributions up to a specific percentage. For example, an employer might contribute 3% of your salary to your 401 as long as you also contribute 3%. Also, your contributions to your 401 can have tax benefits, depending on the type of retirement account.
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Paid Training And Development
Many companies pay their employees to attend training and professional development. Additionally, it may be a requirement for new hires to attend new employee training, and employers pay for this. Another perk employers are likely to offer alongside paid training is paid professional development, where employees can attend mandatory developments without the worry of having to use their PTO or vacation days to attend the event.
Understanding Your Employee Benefits
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Employee benefits are an added type of compensation offered to employees by employers. Some of the most common employee benefits include health insurance, paid time off, sick leave, and life insurance. If a company offers a 401, the employer match can be a great benefit since it’s free money because employers contribute a percentage of an employee’s wages to your retirement account.
When considering a job, it’s important to consider each company’s benefits. Read on to learn the most common employee benefits.
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Help Employees Reduce Stress
You may offer benefits that encourage healthy habits, but financial challenges can be a significant source of stress for employees. When team members face rising stress levels, it can have a negative impact on both their performance and productivity. Having adequate support can help employees manage stress and solve problems.
Example Of Employee Benefits Structures
Once you know the kind of employee benefits you’d like to offer, you’re ready to decide how you want to structure them.
In general, employers have two different ways to structure, contribute, and offer employee benefits:
- Organizational-oriented benefits
- Consumer-oriented benefits
Depending on the type of benefits you’re hoping to offer, you can offer all organizational-oriented benefits, all consumer-oriented, or a mix of both. Let’s go over each in more detail.
Also Check: Full Time Employee Benefits Required By Law
Higher Education Fee Waivers Discounts
A 25% discount on undergraduate tuition at any state operated institution of higher learning in Tennessee is available to children 23 years of age or under of full time state employees. In addition, full-time state employees with six months of continuous service are eligible to have tuition fees waived for one course per semester at a state institution.
Gym Memberships Or Discounts
Subsidized memberships or subscriptions to gyms or fitness websites could inspire many employees to take charge of their own fitness. Theyll be forever grateful to employers who give them the encouragement and the support they needed to start feeling their best.
How to get started with this employee benefit: Compt.io
Compt.io offers a perk platform that makes it easy to stay legally compliant while also offering employees stipends and discounts on gym memberships and other in-demand benefits.
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Three Main Benefits Of Having Employee Profiles
1. They Help Bring Together Remote Employees
When employee work with each other it’s not always easy to get detailed information of who each other actually are and when employees or HR Manager fill out their employee profiles, they are letting everyone around them know not only about their professional expertise but also they share personnel
2.They Help Employees to Network
When you have a robust profile, networking can be performed right from the comfort of one’s home or office. A lot of people don’t realize that networking doesn’t have to happen externally, either. Companies with hundreds of employees serve as their own communities. Every member can benefit from networking with colleagues that are striving to reach similar goals.
Why Do I Need Hazard Insurance For A Small Business
While many states do not require business owners to carry hazard insurance, it’s a good idea to have to help cover the costs of damages you would otherwise have to pay out-of-pocket for. You may also need a specific hazard insurance policy if you’re planning to secure business funding from a lender. Loans from the U.S. Small Business Administration , for example, may require proof of business hazard coverage .
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Prescription And Pharmacy Benefits
Many health coverage plans offer prescription benefits, such as lower co-pays for medicines and even no-cost prescriptions. Many pharmacy benefits contain a plan formulary along with tiered pricing for prescription drugs. The plan formulary lists the available medications under your specific prescription plan and often includes medications necessary for chronic and acute diseases.
Additionally, most prescription plans offer three different tiers of medication prices, with generic medications in the lowest cost options. The co-pay for certain prescription drugs can vary, depending on the tier on which the medicine is listed.
Other Employee Benefits Ideas
Consider the following options if youre looking for other creative employee benefits beyond financial wellness and holiday parties.
23. Phone discounts
Offering discounts, free phones, or subscriptions are an excellent job perk that doesnt cost the company too much. It will help retain and attract the top talent.
24. TGIF giveaways
Everyone loves a freebie. Why not offer surprise gifts to a lucky winner each Friday? You dont have to offer huge prizes, even something small will go a long way to creating a warm environment.
25. Free breakfast
Breakfast is the most important meal of the day. Offering a complimentary breakfast option is an excellent way to boost your workers productivity, encourage an early start, and look after their health.
Showing employee appreciation is the best way to boost morale and attract top talent. Offering flexible schedules and office perks will demonstrate your commitment to your workers. You could run a referral program to encourage recommendations and offer benefits to your current workers.
Want to know how Engagedly can help boost employee productivity and performance? Book are free demo with our experts!!
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Hazard Insurance For An Sba Loan
As part of granting a loan, the SBA outlines that proceeds from insurance coverage, which may include hazard insurance, can be deducted from the eligible loan amount. Additional location-related coverage may also be required. This includes economic injury disaster loans the SBA granted to businesses that were negatively impacted due to COVID-19.
Health Disability And Other Welfare Benefits
- Can the Department of Labor assist me with my health, disability, or other ERISA welfare benefit issue, if my benefit is being denied by my plan?You can speak to an EBSA employee with expertise in ERISA and employee benefits. Please contact us by phone at 1-866-444-3272, or online to communicate directly with an EBSA Benefits Advisor. EBSAs Benefits Advisors will review and discuss your issue with you. When appropriate, we can contact employee welfare benefit plans and attempt to address issues through voluntary compliance.
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Employee Benefits Laws And Updates
There are quite a few laws that apply to employee benefits. Not only are there a lot of legal stipulations regarding benefits, but they are continuously evolving. As an employer, its your responsibility to comply with employee benefits laws and ensure you remain abreast of any updates. Here are some of the most prominent laws you should know about when it comes to establishing and implementing your employee benefits program:
If youre concerned about violating employee benefits laws, you may want to consult an HR professional. If youre enrolled in QuickBooks HR services, you can talk to an HR advisor who can provide guidance regarding employee benefits requirements.
Dental Vision And Other Insurances*
All regular full-time and regular part-time employees are eligible for a variety of voluntary insurance products, including dental and vision insurance, disability and life insurance, home and auto insurance discounts, legal coverage, identity theft protection and more. Benefits begin the first of the month following 30 days of employment. This is a Section 125 Cafeteria Plan. Many of the benefits are pre-taxed and are 100% employee paid. There are some restrictions on part-time eligibility and on spousal coverage.
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Employee Assistance Programs With Financial Wellness Services
An employee assistance program can help employees resolve a variety of different issues that might adversely affect their work performance. From financial challenges to resources that assist in handling stress, an employee assistance program provides a confidential source that employees and their families can use to find support. A mentally healthy workplace is good for business, so consider taking steps today to improve the mental health of your employees.
Key Employee Trends And Ways Hr Can Respond
“Human-centered.” That’s the most important word for HR in 2023, according to Kathi Enderes, Senior Vice President of Research for The Josh Bersin Company.
“Your organization needs to be human-centered. Leadership needs to be human-centered,” Enderes told us at the recent HR Tech Conference. Several other pioneering thought leaders at the conference also chose “human” as their watchword when we conversed in the Unum podcast booth.
The reason for this emphasis? Today as never before, employees need their employers to focus on them as people, not just workers. A recent LIMRA study showed that employees who feel cared for at work are 7.4 times more likely to stay with their employers.1
We are living through an era of rapidly accelerating change and experiencing a new paradigm in the employee-employer contract. In this new world of work, employers who don’t understand this evolution face peril when it comes to attracting and retaining talent and succeeding competitively.
At the HR Tech conference, thought leaders also called out resilience, flexibility and well-being, as well as a need for better measurement and data intelligence in the HR function. Today, HR has an enormous opportunity to lean into their role and make a profound difference to employees’ lives.
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Paid Vacation And Sick Time
Paid vacation and sick days are also great employee benefits. Generally, you earn a set number for each month you work. These days will accrue as you work.
Many employers also give additional days once you reach the five- or 10-year mark. When changing jobs, you may want to consider the benefits that you will give up due to seniority.
Also, when you leave, your company may pay you for the sick days and vacation days that you have accrued but not used. However, it varies by state on whether that is enforceable by law.
What Type Of Hazard Insurance Does The Sba Require
The SBA will require a business to obtain adequate insurance coverage to qualify for a loan. This may mean general liability coverage and/or commercial property insurance that includes hazard coverage. Keep in mind that the SBA may require other insurance coverage , depending on the type of loan you’re looking to secure.
Specifically, the SBA will be looking for hazard insurance that meets the following criteria:
- The amount of coverage must equal at least 80% of your loan amount.
- The insurance must be listed under the name of the business.
- If you operate under a doing business as , it must be listed on the policy.
- If the business doesn’t currently have the necessary insurance, it must provide proof of coverage within 12 months of receiving a loan.
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How Much Does Business Hazard Insurance Cost
The cost of a hazard insurance policy will differ for every business. Primary factors that can influence the cost of hazard insurance include:
- Property age and value: The more property you have, the more that coverage will cost.
- Replacement value vs. cash value coverage: Replacement value is the cost to purchase a new version of the damaged property, while actual cash value is based on how much the covered item cost before it was damaged. Given depreciation, cash value coverage is usually less expensive than replacement value coverage.
- Coverage limits: As with most insurance policies, your premiums will increase for more coverage.
- Lender requirements: Before granting a loan, a lender may stipulate that you have a specific amount of property coverage.
Types Of Employee Benefits
There are many types of employee benefits. However, they generally fall into two broad categories: required and optional.
Benefits required by law:
- Paid sick leave: Paid sick leave is required in 13 states and Washington, D.C.
- Workers compensation: If employees are injured on the job, theyre entitled to workers compensation.
- Family or medical leave: Employees are entitled to 12 weeks of unpaid leave if the reasoning falls under the FMLA requirements.
- Social Security and Medicare contributions: Employers are required to match Social Security and Medicare taxes.
- Disability insurance: In some cases, disability insurance may be required, replacing a portion of the employees monthly income.
According to the U.S. Bureau of Labor Statistics, paid sick leave was available to 75% of private industry workers.
Optional employee benefits:
Fringe benefits in another term for employee benefits that fall outside of wage-related compensation. Other fringe benefits you could provide include perks like employee meals, on-site childcare, flexible hours, tuition reimbursement, and commuter benefits.
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How To Find Out About Employee Benefits Solutions
We recommend talking with your employee benefits advisor or specialist to learn more about the benefits packages and solutions your business is committed to providing. Some companies will have an internal employee benefits information system which will contain the services being offered.
Some companies will send out employee benefits news outlining current benefit changes to plans or solutions.
If you are new to employee benefits, resources such as the Employee Benefit Research Institute or the International Foundation of Employee Benefit Plans offer information to help you get started.
Whats In And Out For Employee Benefits In 2023
Employee Benefits Consultant for Employers | I Help Employers Save on Healthcare and Enhance their Employee Benefits
Less is more will be the employer mantra for 2023, and thats not necessarily a bad thing. The pandemic and competitive labor market caused employers to overspend on benefits and compensation packages. Looking to cut costs while increasing productivity, employers will seek out the benefits that provide the most value to their workforce in 2023.
How To Start An Employee Financial Wellness Program
If you’re limited in the number of employee benefits you can offer job candidates and employees, don’t underestimate the power of providing resources such as financial wellness solutions, which can make a lasting impact in your employees’ lives. For Paychex payroll clients, FinFit is a free program that enables employers to offer benefits such as a personal financial wellness assessment, online educational tools and resources, and even short-term employee loans for unexpected expenses.
What Is A Financial Wellness Program
To help combat stresses around money matters, employers may want to implement a financial wellness program for employees. These programs are aimed at educating employees to help them manage their money and reduce financial burdens. Financial wellness programs may include features such as personal financial coaching on specific topics, online education, budgeting tools, and credit resources.
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Why Are Employee Benefits Important
Offering benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. A solid employee benefits package can help to attract and retain talent. Benefits can help you differentiate your business from competitors.
Employee benefits can improve your companys bottom line by engaging employees to participate in wellbeing programs, such as Virgin Pulse. Healthier employees mean reduced healthcare costs for your organization. Employees with fewer health risks experience fewer sick days, fewer trips to the doctor, and spend more time working in your organization, bringing their best selves to work every day.