Employee Benefits by Matt Bacak Does employee benefit administration

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Employee Benefits by Matt Bacak Does employee benefit administration Powered By Docstoc
					by: Matt Bacak

Does employee benefit administration have you more confused than ever? If so, it's no wonder.
Even a simple employee benefit plan can create mounds of paperwork and management
problems for businesses. To make matters worse, it has become increasingly difficult for
businesses to compete in today's labor market without offering an employee benefit program of
some kind. Most employees today expect full employee benefits and many believe they should
receive benefits equivalent to a federal employee benefit program. Even employees that work for
minimum wage commonly expect to receive employee benefits similar to the Wal Mart
employee benefit program.

Whether you like it or not, employee benefits have become a must have for most employers. Not
only does offering employee benefits help you to keep up with the competition, but it can also be
a good way to attract and retain quality employees as well as promote teamwork and morale in
your organization.

If you are considering offering an employee benefit plan to your employees in order to remain
competitive and retain quality employees, it's important to understand the key components of a
plan and employee benefit management.

So, what is the minimum employee benefits you should offer? Take a look at the basics below.

Health benefits are considered to be the core of any employee benefit plan by most employees.
Today most employers offer a choice between either an HMO or a PPO and cover approximately
80% of the premium for their employees as well as the dependents of their employees. You may
also consider offering dental and vision coverage.

The other key component of an employee benefits program is a savings program. By and far, the
most popular plan of this type is the 401(k) savings plan. Keep in mind that you can offer a
401(k) to your employees without actually contributing any funds yourself. If you do choose to
generously make contributions to your employee's savings plan, you might consider setting a cap
out amount. For example, you might agree to contribute no more than $1000 a year per
employee. That is quite standard among most small businesses that offer this type of plan.

While health and savings benefits comprise the core of most employee benefit plans, it's
important to recognize that you can be flexible when designing an employee benefit program.
Many employers today are offering employee benefits in a most creative way to satisfy the
emerging unique interests of their employees. For example, many businesses are now offering
onsite child care, pet insurance, domestic partner benefits and meal reimbursements for
employees that typically put in overtime.

This article was posted on November 15, 2005