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    Modul 4

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    Muahid Rasiyidin
    The document discusses employee benefits that employers are required to provide such as time off for voting, jury duty, and military service as well as complying with workers compensation, FICA taxes, and unemployment insurance. It recommends consulting experts when setting up benefits plans to avoid expensive legal issues. Providing the right benefits can add 30-40% to payroll costs so getting the most value from these expenditures is important but many small businesses make costly mistakes in their benefits administration. The document also reviews options for health insurance plans and tips for avoiding scams when purchasing insurance.

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    Modul 4

    Uploaded by

    Muahid Rasiyidin
    21 views2 pages
    The document discusses employee benefits that employers are required to provide such as time off for voting, jury duty, and military service as well as complying with workers compensation, FICA taxes, and unemployment insurance. It recommends consulting experts when setting up benefits plans to avoid expensive legal issues. Providing the right benefits can add 30-40% to payroll costs so getting the most value from these expenditures is important but many small businesses make costly mistakes in their benefits administration. The document also reviews options for health insurance plans and tips for avoiding scams when purchasing insurance.

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    The document discusses employee benefits that employers are required to provide such as time off for voting, jury duty, and military service as well as complying with workers compensation, FICA taxes, and unemployment insurance. It recommends consulting experts when setting up benefits plans to avoid expensive legal issues. Providing the right benefits can add 30-40% to payroll costs so getting the most value from these expenditures is important but many small businesses make costly mistakes in their benefits administration. The document also reviews options for health insurance plans and tips for avoiding scams when purchasing insurance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views2 pages

    Modul 4

    Uploaded by

    Muahid Rasiyidin
    The document discusses employee benefits that employers are required to provide such as time off for voting, jury duty, and military service as well as complying with workers compensation, FICA taxes, and unemployment insurance. It recommends consulting experts when setting up benefits plans to avoid expensive legal issues. Providing the right benefits can add 30-40% to payroll costs so getting the most value from these expenditures is important but many small businesses make costly mistakes in their benefits administration. The document also reviews options for health insurance plans and tips for avoiding scams when purchasing insurance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The Basics of Employee Benefits

    1. Benefit Basics

    The law requires employers to provide employees with certain benefits. You must:

     Give employees time off to vote, serve on a jury and perform military service.
     Comply with all workers' compensation requirements.
     Withhold FICA taxes from employees' paychecks and pay your own portion of FICA
    taxes, providing employees with retirement and disability benefits.
     Pay state and federal unemployment taxes, thus providing benefits for unemployed
    workers.
     Contribute to state short-term disability programs in states where such programs exist.
     Comply with the Federal Family and Medical Leave (FMLA).

    You are not required to provide:

     Retirement plans
     Health plans (except in Hawaii)
     Dental or vision plans
     Life insurance plans
     Paid vacations, holidays or sick leave

    2. Legal Matters

    Such complexities mean its good advice never to go this route alone. You can cut costs by doing

    preliminary research yourself, but before setting up any benefits plan, consult a lawyer or a

    benefits consultant. An upfront investment of perhaps $1,000 could save you far more money

    down the road by helping you sidestep expensive potholes.

    3. Expensive Errors

    Providing benefits that meet employee needs and mesh with all the laws isn't cheap--benefits

    probably add 30 to 40 percent to base pay for most employees--and that makes it crucial to get

    the most from these dollars. But this is exactly where many small businesses fall short because

    often their approach to benefits is riddled with costly errors that can get them in financial

    trouble with their insurers or even with their own employees.


    If workers needs vary widely, consider the increasingly popular " cafeteria plans ," which give

    workers lengthy lists of possible benefits plus a fixed amount to spend.

    4. Health Insurance

    Health insurance is one of the most desirable benefits you can offer employees. There are

    several basic options for setting up a plan:

    1) A traditional indemnity plan, or fee for service.


    2) Managed care.
    3) Self insurance.
    4) Archer Medical Savings Account.
    5) Cost Containment

    The rising costs of health insurance have forced some small businesses to cut back on the

    benefits they offer. Carriers that write policies for small businesses tend to charge very high

    premiums. Often, they demand extensive medical information about each employee

    How to protect yourself from a scam? Here are some tips:

    a) Compare prices.
    b) Check the plan's underwriter.
    c) Make sure the company follows state regulations.
    d) Ask the agent or administrator to show you what his or her commission, advance or
    administrative cost structure is.
    e) Get help

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