Small Business Employee Benefits Programs
Small business employee benefits programs are often quite sparse. This is particularly true for small businesses employing women of child bearing age. Maternity benefits are just too expensive for most small businesses to offer to employees. 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.
Small Business Health 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. |
Pre Tax Deductions Pre tax deductions can cut taxes in six different ways: federal income taxes, state income taxes, payroll taxes, alternative minimum tax, qualified medical expenses, and child tax credit. Contributions are available for health insurance, 401K plans, and Flexible Spending Accounts (FSA). |
Payroll Deduction Savings 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. |
