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 small business (whether a LLC, Corporation, Partnership or proprietorship) 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 business. 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!