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Guide to Offering Benefits for Part-Time Employees

It is not uncommon for part-time employees to not have health care coverage. Federal law as well as most state laws does not offer most benefits for part-time employees. And for most employees, part-time means working from 20 to 32 hours per week. But while most benefits are not required, there are plenty of reasons you might want to consider offering benefits for part-time employees.

What benefits for part-time employees are mandatory?

Generally, there are four critical and mandatory benefits all employers must cover. These benefits are:

1. Social Security and Medicare

Employers, first of all, are required to withhold 6.2 percent of all salaries for the employee's contribution to the social security benefit, and 1.45 percent or more contribution to medicare.

In addition, the employer must also include an identical amount withheld for each employee. This is sometimes known as matching the employee's contribution.

2. Unemployment insurance

Every employee, with the exception of some specific types of employees, has the right to file for unemployment benefits if they are laid off.

3. Workers compensation benefits

Employers may self insure or purchase a policy from a state-run benefit provider, but workers must be covered for falls and accidents on the job.

4. Family and Medical Leave Act Protections

If an employee works 1250 hours or more in a year for a company then they can qualify. Many part-time employees in Buda and San Antonio, TX may not meet the minimum threshold for coverage by group medical benefits but it is possible in some cases. Some employees who work perhaps 20 hour a week for a season and then work full-time the rest of the year likely will qualify.

Although some states may have additional employee burdens, any other type of benefits is optional. Benefits such as vacation pay, personal days and sick days, tuition reimbursement, health insurance, and the like are pretty much up to the employer's discretion. These are all great benefits for a company to offer if you would like to attract and retain talented employees for your business.

Why employers should seriously consider offering such benefits anyway?

Right now, with the occurrence of the COVID pandemic, employees are in the driver's seat. The need for workers is higher than ever.

Thousands of previously laid-off workers are never coming back and it's gotten to the point where employers have not only had to offer higher wages to attract people to fill jobs but some of them are so desperate to attract future employees that they actually pay people just to show up and interview.

Through gig work and entrepreneurship, working people have learned that they can indeed survive on less, and so if they are going to return again to a structured environment, they want certain freedoms and benefits.

Failure to offer those benefits such as health insurance, time off to visit a doctor, or to take care of a sick child will cause thousands of smaller businesses to either adapt and offer benefits such as this or close their doors.

In Conclusion

It is up to you as an employer to provide a workplace that your part-time workers will love equally as well as those who are full-time employees. As a business owner it is your job to ensure that your employees have access to the things that allow for them to be healthy and in turn, bring more value as employees to your business.

Thinking about offering Group Medical Benefits for Your Part-Time employees in Kyle?

1921 Consultants has the resources and the experience necessary to help you find the right way to do it. We can guide you in the right direction when it comes to Group Medical Benefits in Buda, Kyle, and San Antonio, TX. Get started today with a free consultation!


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