Employee benefits are an essential part of any business’s employee experience strategy. One of the most important reasons to know about benefits is to make sure you’re compliant with local and federal rules and regulations.
This article will cover the four significant employee benefits that you should include as a business. By the end, you’ll know the ins and outs of these benefits and how to implement them.
1. Medical Benefits
In this day and age, most qualified candidates will expect basic medical coverage. Health insurance premiums can be part of a flexible benefits plan and usually cover up to $3,600 of expenses, to be taken out of employee’s pay pre-tax. These expenses include doctor and dentist visits, vision screenings, and medical prescriptions.
Additionally, a medical reimbursement account allows up to $2,500 a year pre-tax to be spent on medical expenses that are not usually covered. These expenses can include eyeglasses, copayments, first aid kits, and more.
2. Life Insurance
Life insurance, also known as accidental death and dismemberment insurance, is another common benefit. This insurance covers funeral and death care costs for the family of the employee if they pass away suddenly. Funeral costs can include traditional preservation and transportation of the body or cremation expenses. There are other costs such as caskets, which can cost thousands of dollars.
Accidental death and dismemberment (AD&D) insurance gives the family of the employee a lump sum amount if they pass away from an accident.
Also, make sure that the employee has a beneficiary on file should something unexpected happen. It’s always good to plan ahead in case of an emergency.
3. Disability Coverage
Disability insurance is offered on a short- or long-term basis. If the employee develops a lengthy illness, the employer has to pay during the time they’re not able to work.
On the other hand, if they incur a short-term disability, such as an illness or injury, the benefits cover payment during that period.
4. Retirement (401k) Insurance
Of all the retirement plans, the 401k is most commonly used. In this plan, the employee can deduct a certain amount from each paycheck to go towards retirement. Some employers will match the percentage the employee sends to savings each month.
Reach out to MKS&H to discuss employee benefits further. We’re a team of certified CPAs and business consultants who are keen to help business owners in financial and legal matters.