Having a generous employee benefit package is a great way to keep the great employees that you currently have as well and draw in talented potential employees. A good plan can make the difference between a successful business and one that barely gets by. Since benefit programs are not cheap there are a few things to consider when setting up your New Jersey Employment Benefits Plan.
Health Insurance is generally the largest cost and hardest area to maintain within an employee benefit plan due to rising premiums. HMOs, or Health Maintenance Organizations, are the most common form of health insurance as it allows the employee to choose their primary care provider. The worker then pays copay at each doctor’s visit and the insurance company covers the rest. Preferred Provider Organizations, or PPOs, give more options for healthcare providers and allows the employee to see specialists outside of the pre-approved network. Other health benefit options include: Point-Of-Service-Plans, High-Deductible-Plans, and Self Insurance plans.
Dental plans are common but not required in an Employment Benefit Plan. They include options such as Fully-Funded Employer where the company pays 100 percent of the costs. Partially Funded Employer, where the company covers around 80 percent and the employee pays the rest. The final option is Fully-Funded Employee plans where the employee pays 100 percent of the cost and the company only absorbs payroll deductions and administrative costs.
401Ks are voluntary retirement plans that are greatly appreciated by employees due to the increase of financial independence. The employee puts in a portion of their pre-tax earnings, and many employers offer to match these contributions. The employee can borrow against their 401K before retirement, however they must pay penalties. After retirement they can withdraw funds tax-free.
Vacation Time, also called PTO in many organizations is a fairly common and low cost benefit. Two weeks is generally standard and some companies add additional time as the employee increases in seniority. Many companies create vacation time rules in order to avoid employees taking advantage of the paid vacation policy. Some rules include how much notice is to be given prior to the vacation, or a use-it-or-lose-it policy.
PTO is a term that’s used interchangeably with vacation time, however in some organizations additional Paid Time Off typically includes things such as maternity leave where a new mother generally gets 12 weeks paid leave. Many companies are also now offering paternity leave to new fathers. Family medical leave typically gives an employee 12 weeks unpaid leave to care for a sick or injured family member without the fear of losing their job or health benefits.
While potentially costly, a well laid out Employee Benefit Plan can be a fantastic incentive to your employees.
At Vreeland Insurance Inc., we know how important it is for you to keep your employees happy and healthy while keeping your business profitable. Call us today for information on how we can help you with your Employee Benefit Plan. 877.755.3767