Depending on the type of business you start, you may need help running your business. Typically, if you don’t have a business partner, you may begin the process of hiring employees. Although you already compensate your employees for their work, there are a wide variety of other benefits that can be offered to your employees.
It is important to note that companies with 50 or more full-time employees are required by law to provide medical insurance to their employees. The same can be said about family and medical leave. If a company has 50 or more full-time employees, they are required to allow employees to take up to 12 weeks of unpaid leave without that employee risking losing their job. Worker’s compensation insurance is also required by law. This type of insurance covers the financial burden an employee may face as a result of a workplace injury or illness. If an employee is fired, they may be eligible to receive unemployment insurance benefits. However, if the employee’s termination was justified then no benefits are required to be paid out. Employers are also required by law to pay social security, Medicare, and Federal Insurance Contributions (FICA).
Health insurance is a pretty standard benefit that can be offered by an employer. This type of insurance covers things like hospital and doctor visits, surgery, and even prescriptions. Typically, your employer may even cover part of your insurance premium payment. The dental insurance and vision insurance are other forms of health insurance that can potentially be offered by an employer. Dental insurance covers things like annual check-ups, cleanings, x-rays and fluoride treatments. Vision insurance covers things like eye exams, glasses, and even contact lenses.
Life insurance is not a required benefit that has to be offered to employees, but some employers choose to offer it. Life insurance is a type of insurance that would pay out a sum of money either on the death of the insured person or after a set period of time. Typically, the main stipulation with these policies is that your employee still has to be working for your company at the time of their passing. Here is a resource that may help you better understand if offering life insurance is something you should do for your employees.
Disability insurance covers a portion of an employee’s income if they are unable to work for an extended period of time due to illness or injury. The two types of disability insurance that are typically offered are short-term disability and long-term disability. There are slight differences between the two types of insurance. Learn more about both types here.
Retirement plans help your employees prepare and save for their future retirement. This type of benefit is not required by law, however, it is not uncommon to offer these types of benefits to your employees. There are many different types of retirement plans you can offer; here is a list of all the available plans. Questioning which plan would best work for you and your employees? Here is a helpful article to help you determine the best fit for your business.
At the end of the day, there are benefits you will have to provide by law and some you can offer to your employees as an added value to working for your business. It is up to you to decide what would work best for your budget and ultimately what would benefit your employees the most.
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