Ancillary Benefits – Enhance And Save With Them
Now more than ever providing employees with access to Health Benefits is extremely important. This is why I am going to share ways to enhance benefits, reduce cost, or simply be able to offer benefits to your employees.
Ancillary benefits often also referred to as voluntary benefits consist of a variety of products… the most popular tend to be dental, vision and life, but there are others such as accidental, hospital indemnity, disability, and critical illness to name a few. Such plans can be used in a variety of ways… if you are in a competitive industry and need to enhance your benefits in order to attract and retain talent, including ancillary benefits can be a great way to do so.
Or on the other side of the spectrum if you are not in a place to offer traditional health insurance but want to help take care of your employees offering ancillary benefits can go a long way.
Ancillary benefits can be funded in two ways, voluntary… the employee pays 100% of the premium through a payroll deduction or with employer contribution… where the employer can choose to cover a portion or all of the premium.
The cost of the benefits can range anywhere from $50 a month to $10 a month depending on the of the product that is offered and the age of the employee. The key is to review what it is that you are trying to achieve to determine the best combination of benefits.
Offering such benefits to employees can also be beneficial to the employer. Not only are you showing your employees that you care about their wellbeing and offering insurance products they often cannot obtain on their own, but also helping your bottom line.
By taking advantage of Section 125 and allowing employees to take deductions pre-tax you are in turn lowering your employer FICA contributions.
Also, by allowing the deductions you are lowering your payroll witch would directly affect workers’ comp rates.
If you are a business owner and would like a personal review of your Benefits or simply more information on anything I discussed please reach out… I promise not to bombard you with emails or phone calls simply for asking a question.
SBIS offers its clients a complimentary HR portal and compliance audit. Not only are employers able to create custom Employee Handbooks and have access to HR professionals, but also be and stay in compliance.
Please contact us for more information.
