Small Business - The Benefit Of Adding Benefits To Payroll

With unemployment rates going down andleaders in researching alternative benefits options
companies struggling to attract and retain qualitysuch as mini-meds (miniature medical plans with
employees, employers should pay closelower maximum coverage and limited visits),
consideration to the emphasis being put on theindividual medical plans specific to each employee
importance of health care by employees. We(often times much lower cost than group rates)
have seen several times more and more thatand Health Savings Accounts just to name a few.
employees are first asking about the benefits planSmall businesses should definitely consider benefits
and then about salary. It is obvious thatoptions now as there are proponents of legislation
affordable health care is prevalent on the mindsto make benefits mandatory for small to medium
of candidates.size businesses. At the end of 2005 California
For existing employees, we've found that offeringvoters were presented with potential legislation
higher benefits contributions in lieu of salarythat would require that certain employers provide
increases is a well received concept. Smallhealth coverage for their employees and in some
businesses have their eyes on the bottom linecases dependents through either (1) paying a fee
and labor costs are one of the hardest hittingto a new state program primarily to purchase
factors. By offering higher contributions toprivate health insurance coverage or (2) arranging
benefits plans employers are able to reduce thedirectly with health insurance providers for health
overall payroll costs. This is an area that mostcare coverage. The state would also establish a
employers don't spend a lot of time looking atnew program to assist lower-income employees
because they think they are under the impressionto pay their share of health care premiums.
it will be too costly. Another misconception is thatThis referendum lost by only about 2% so we
for a good benefits contribution plan, an employerare keeping our eye on this to resurface again in
must purchase a group policy. This is not thethe very near future.
case, a resourceful HR person will assist company