Small and medium sized employers must be able to compete with larger companies in order to recruit and retain the most effective workforce. Matching large employer salaries and workplace environments are important; however, it can be more difficult to match the comprehensive employee benefit packages that large employers often offer.
Large employers can provide a list of insured plans for individuals to choose from. Cafeteria plans (IRS sect. 125) allow employees to shop among available coverages using a monthly fixed pre-tax contribution provided by the employer. Employees are also able to contribute their own funds via pre-tax salary reductions. These salary reductions reduce both the employee’s and the employer’s portion of the total payroll tax liability and payroll-based costs.
Best Employer Solutions provides guidance implementing many qualified plans which have been traditionally associated with large employers, such as: Cafeteria Plans, Flexible Spending Accounts, Health Savings Accounts and Health Re-imbursement Arrangements. These services assure that your company’s benefits compete with the largest of employers. Best Employer Solutions also provides all the documents required for compliance with both federal and state mandates.
Best Employer Solutions offers a full menu of insured benefits and administrative services that can compete, feature for feature, with plans offered by larger more established employers. Contrary to the commonly held belief that “bigger is always better”, small to medium sized employers have the advantage of greater flexibility in plan benefits and costs. This allows you to get a more precise fit to your employee’s needs, while avoiding many compliance requirements placed upon large employers.
Group Medical Coverage for full time employees and their eligible dependents is up to 40% less expensive than comparable individual coverage. In some cases, small to medium sized employers can offer each employee up to 4 plan designs to choose from. Employees are free to choose the benefits and price that best fits their individual needs. Employers with less than 50 employees can avoid the Affordability Index reporting (IRS form 1094c, 1095c) and testing which can results in administrative headaches as well as considerable fines for employers that are found to be non-compliant. Large employer plans must also follow federal PPACA Minimum Essential Benefit regulations. This can limit the employer’s ability to offer plans that are truly affordable.
Employers with less than 50 employees have fewer federal funding, plan design and reporting requirements. They can offer benefit designs and contribution strategies that are not available to larger companies. These advantages allow smaller employers to offer comprehensive benefits at a lower cost, with less compliance responsibility and liability.
Furthermore, Best Employer Solutions offers many Qualified Plans which allow you to sponsor coverage for all eligible employees on a tax-free basis. Qualified benefits are the only way to pass income to your employees, and avoid all the associated employee and employer payroll taxes. By following our simple guidelines, you can offer coverage that meets employees’ needs, while reducing payroll taxes.
Qualified High Deductible Plans allow employees to participate in tax-free Health Savings Accounts (HSA). These accounts are particularly attractive to healthy individuals who generally require less medical attention. 100% coverage for preventive care is included in all plans. High income individuals realize the significant tax savings associated with HSA accounts.
Indemnity, PPO and POS plans can offer $0 deductible or low deductible options along with low co-pays for professional services, as well as the convenience of an easy-to-use drug card. These plans are popular with many employees because of the simplicity of the design. These plans may offer network provider affiliations, and all have options for nationwide networks as well as out-of- network benefits.
Life insurance is available on a tax-free basis for our employer sponsored group policies up to the first $50,000 in death benefit. 40% of adult Americans have no life insurance and an additional 20% claim to be significantly under insured. Employer group coverage is often the only coverage an employee has, and the benefit is doubled for accidental death. Additional group coverage up to $500,000 is available regardless of medical history or pre-existing limitations. Benefits are also available to eligible dependents. Group life insurance can be significantly less expensive than individual coverage.
Dental insurance annual premium can cost less than 2 dental checkups. Our tax qualified policies cover not only exams, x-rays and cleanings; but also: fillings, periodontics, endodontics, crowns, bridges, dentures and orthodontia. Maximum annual benefits are available up to $5,000. Our quality, affordable dental coverages are only available through qualified employer sponsored plans.
Disability Insurance for most occupation classes is only available through an employer sponsored plan. 40% of employees will be disabled at some point in their career and 19% will be determined to be totally and permanently disabled before age 67. 25% of working Americans have $0 savings and 69% report having less than $1,000 saved. Even if an employee meets the Social Security Administration (hereinafter referred to as “SSA”) definition of “Totally Disabled” (unable to perform any occupation for which the employee is qualified) their first month’s Social Security disability benefit will not be paid until 7 months after the qualifying event. Most employees would experience significant hardship in the event of even a short absence due to illness or accident. The total monthly benefit as defined by the SSA is based on a decreasing scale and average benefits are less than 50% of pre-disability earnings. Our plans can replace up to 70% of pre-disability earnings, and benefits can be elected to be paid tax free. Benefits can be paid in as little as one week.
Voluntary benefits allow your employees to select and pay for the optional benefits that best suit their needs, and the premium for most insured plans can be deducted on a pre-tax basis. Vision, cancer, critical illness, and accident insurance can be offered as well as pre-paid legal services, credit monitoring, pet coverage and other helpful services.
Vision coverage is a real money-saver for employees and dependents needing eye exams and eyewear. This tax-free comprehensive coverage costs less than one cheap pair of glasses per year and includes exams, a wide selection of frames and lenses as well as contact lenses and discounts on many other products.
Cancer insurance can be selected by employees and their eligible dependents and paid for with tax free dollars. 39.5% of all Americans will be diagnosed with some form of cancer during their lifetime. Many will experience a serious financial hardship as a result of this devastating event. Our quality comprehensive cancer policies provide benefits for initial diagnosis, in-patient treatment, out-patient treatment, drugs, travel mileage, travel lodging and more. This group coverage is significantly discounted when compared to individual policies available to the public.
Critical illness insurance can be selected by employees and paid for with pre-tax dollars. Heart attack, stroke, pulmonary disease and many other disorders may cause significant temporary or permanent financial hardship on employees or their eligible dependents. Employees and eligible dependents can elect up to a $100,000 cash benefit that can be paid upon initial diagnosis. This benefit can be paid tax free.