Navigating the world of employee benefits is challenging at every level, and especially so as a new business owner or founder.
Here is a list of the basics that you should keep in mind when deciding to offer benefits:
- Employee benefits can range from medical, dental, vision, and life insurance to commuter benefits, savings accounts, and stipends. Research what you want to offer and ask your employees what is the highest priority.
- In order to offer medical, dental, vision, and life insurance, you need at least 2 W2 employees. 1099s typically do not qualify for benefits unless they meet specific criteria.
- In order to qualify for large group insurance, you must have more than 50 employees EXCEPT in Vermont, New York, Colorado, and California, where you need 100 employees.
- Small group rates are Age-Banded and set by the government, so there is no room for negotiation. It is all based on the ages of your employees and their dependents.
- Large group rates are negotiable so make sure you are pushing your broker to get you the best plans at the lowest rates!
- You can offer multiple plan options for different lines of coverage no matter what size you are. Typically, 2 to 3 options is best to provide a variety without overwhelming your employees.
Knowing the basics of benefits is important so you can put a good program in place that can help recruit and retain the best talent, without being a long term financial strain on the company.
Once you have done your initial research, it is important to find a broker that can help with everything from quoting plan options to open enrollment to employee support.
If you are interested in exploring your benefits options, let us know!
