Business owners of small businesses sometimes opt to not offer employee benefits because of the cost implication from statistics provided by the relevant government agencies.
Employees are the most valuable asset, and employee benefits enable businesses to attract and retain the best talent for its growth and survival. Employees tend to deliver their full potential when they feel appreciated and taken care of. One way of making employees at your business in San Marcos TX feel this way is to offer group medical benefits. You might be asking, what benefits must be offered by law and which are optional? Several job benefits are mandatory such as unemployment insurance, social security taxes, and disability insurance. Whereas health insurance is a different case. This article explores different health insurance benefits that small business employers should provide for employees in New Braunfels.
The law states that all businesses small, or large, must pay Medicare insurance and social security for their employees. Employers should withhold the employee's share of social security at 1.45% and Medicare taxes at 6.2% on the first $137,700 from the gross pay. The contribution reduces your firm tax payments.
Several states like Hawaii, New Jersey, California, New York, and Rhode Island require businesses to offer disability insurance that covers injuries and illnesses not sustained in the place of work. Insurance companies provide disability insurance on a short and long-term basis. Compensation for long-term disability insurance claims is only valid when an employee has worked for twelve months or more in a business.
A small business can qualify for voluntary group disability policies if it employs three or more staff who has purchased supplementary health insurance supported by the employer. The benefits are limited to 60% of the employee's wages from the previous year.
Medical and Family Leave
The law protects the employee by requiring all employers to give unpaid leave each year for a maximum of twelve weeks. Not all employees are subject to annual leave, apart from those who have worked for more than one year for one employer. Employees are eligible for more frequent leaves by law under the following circumstances:
• An employee is taking care of an immediate family member with a critical health condition.
• The employee is taking care of themselves from a critical health condition.
• The employee adopts or gives birth to a child.
All employers must contribute to the state unemployment fund. The funds give insurance benefits to employees laid off before they get another job. The government deducts the funds to settle unemployment claims by former employees from the business unemployment account managed by the state.
The law stipulates that it applies to any business entity with three or more workers. It protects workers in case of injuries and illness during their work. The insurance for employees covers employees' hospital bills, lost wages during the time, and rehabilitation costs for companies such as the ones in Wimberley. You pay for all the expenses if you do not take the worker's compensation policy.
There is no legal requirement for small businesses with less than 50 workers to provide government medical coverage. You can opt for the High Deductible Health Plan (HDHP), where employers contribute more to settle treatment costs.
A Health Savings Account (HSA) with HDHP which expects the employer to contribute to the health plan when employees receive pay. The employer contribution is an effective way to reduce overall business taxes.
All employee benefits should be treated as business operating costs and not as luxuries offered to employees by small businesses. The required health insurance benefits for employees should be in place for all small businesses in New Braunfels. Health insurance is not required to be offered but it helps to boost employee morale because they feel more appreciated and valued by their company. If you'd like to learn more about your options as a small business, schedule a free consultation today with 1921 Consultants.