| What is the major concern for an employer? | | | | place, but hardly any money is contributed to |
| Taking very good care of their employees is a | | | | these plans. In spite of this situation, growing |
| must. Many have perceived that as an expensive | | | | companies do not fund more than $2,500 every |
| task to overcome, as it means providing the | | | | year to an employee's saving plan. Most of the |
| employee with vacations, bonuses, incentive pay, | | | | small company contributions lie at the maximum |
| insurance, etc... While all of them are valid reasons | | | | of $1,000. Hence funding such saving programs |
| there are many ways in which employees can be | | | | would be a good benefit for the employee. Also |
| given benefits that do not drill too deep a hole | | | | identifying a tax-saving scheme would help the |
| into the employer's pocket. | | | | employer also. |
| Medical Spending Accounts: MSAs offer benefits | | | | ESOP, Employee Stock Ownership Program |
| and cost-control advantages like no other policy. | | | | permits the employees to buy stocks in the firm. |
| Self-employed people can use this as also a small | | | | Stocks can also be offered as incentives and |
| group of 50 people. There are two parts to the | | | | bonuses. ESOP has a tax-deferred status that is |
| MSA, one is the high-deductible health-insurance | | | | valid until the retirement of the employee. Similarly |
| plan (HDHP) and the other is the insurance policy. | | | | Pension Plans can be devised where an employee |
| HDHP offers deductibles in the range $1,500 - | | | | can either have a fixed income upon retirement |
| $2,250 for single people and $3,000 - $4,500 for | | | | or contribute to the pension fund. |
| families. Medical insurance is claimed using an MSA | | | | Offering assistance to the employees who have |
| in a manner similar to any other insurance policy. | | | | relocated to work with the firm can be a good |
| CDH, or Consumer-driven Healthcare plans are a | | | | way to build good-will that will go a long way. |
| good option for those employers who want to | | | | Business travelers can be offered perks like being |
| involve their employees in framing insurance | | | | able to take their families on a tour once a year. |
| policies for the firm. There are options like HSA, | | | | "Life-style" benefits like grocery coupons, |
| Healthcare Savings Account and HRA, Healthcare | | | | dry-clean services, health insurance for pets, etc... |
| Reimbursement Account, among many others. | | | | give a sense of belonging to the employee. Having |
| 401(k) and Savings Benefits: Many small | | | | a child-care center is a great way to provide |
| companies have a 401(k) plan or savings plan in | | | | support to working mothers. |