Employers gain by offering voluntary employee benefits; even small businesses.
This is most true when these employers want to attract and retain a female workforce in the growing family life stage. Maternity benefits are just too expensive for employers to offer, and small businesses often feel this the most. Consider some of the unique challenges:
- Health care costs are higher – normal pregnancies drive up costs of care, while complications and premature birth drive expenses off the charts. Fill holes with supplemental maternity insurance.
- Maternity pay is unrealistic – many small businesses can’t pay someone who is not working. Allow employees to purchase short term disability for maternity leave.
- Legal compliance is complex – There are a variety of maternity leave regulations that may apply.
Voluntary employee benefits are a great way for any size employer: large, medium, and small businesses to provide a robust set of maternity benefits to attract female employees, without adding to direct cost.
Voluntary Benefits help all Employers
Pre Tax Deductions Lower Costs – Pre taxing health insurance payroll deductions for supplemental health insurance lowers costs for both the employee and the employer. Similar savings are available through flexible spending account.
Expand Benefits at No Direct Cost – Employers can expand employee health insurance options without adding to direct costs. Employees gain the advantage of greater choice and flexibility in their insurance plan designs.
Reduce Group Health Insurance Premiums – Group health premium rates are determined in part by the policy features: the size of deductibles, co-insurance, and co-pays. Voluntary employee benefits can help businesses control costs while protecting employees from unplanned medical expenses.
Cut Workers Compensation Rates – Workers compensation insurance rates are determined in part by the number and size of claims. Workers with inadequate health insurance coverage are more likely to file a work related claim. Supplemental insurance can help businesses reduce Monday morning claims and lower workers compensation costs.
Extra Help for Small Businesses
Small Business Health Plans – Small business health benefits can compete with big employer plans without adding to direct costs. Voluntary employee benefits close the gap and make a complete benefits package more affordable and easier to administer.
Benefits Administration and Software – Voluntary employee benefits providers often help with administration. They provide state-of-the-art enrollment software systems combined with trained counselors to educate employees about their options, enroll them in plan choices, etc.
Small Business Payroll Tax Relief – Pre tax medical premiums and other contributions lower the amount of payroll taxes (FICA) paid by employers and employees. The amount of savings depends upon reported W2 income, which of course is lowered by these deductions.