Small and medium-sized employers understand the struggle of attracting top talent all too well. One thing that makes recruiting new employees especially challenging is that larger organizations have greater resources to offer better employee benefits packages.
Axcet HR Solutions, an employee benefits solution provider in Kansas City, assists companies with fewer than 250 employees with obtaining affordable and attractive benefits. Here are some of the important employee benefits small and medium-sized employers can offer to level the playing field with larger companies.
The cost of health insurance premiums and out-of-pocket expenses is the top non-salary consideration for most people when considering a job offer. This includes dental and vision benefits as well, although the three types of insurance are normally separate benefits. Health benefits for employees typically cover a portion of the following:
- Hospital stays
- Doctor visits
- Prescription drugs
- Biannual preventive dental exams
- Some dental services such as crowns and fillings
- Routine eye exams
- Prescription glasses or contact lenses
The problem that most small and medium-sized businesses encounter when choosing employee health benefits is they do not have the same bargaining power as larger employers. Leveraging the services of employee benefits consulting services is a simple solution to this problem.
As a professional employer organization (PEO), Axcet HR Solutions acts as a co-employer to all clients. This gives us strength in numbers when it comes to shopping for the best rates and most robust coverage for employee health benefits.
Retirement Savings Account
Offering a 401(k) retirement savings plan with matching contributions is an attractive benefit for prospective employees. However, administering a 401(k) plan also comes with risks to the employer. For example, employers may bear liability for an employee’s stock market losses if the employer did not provide enough educational material to allow for a sound investment strategy.
Another thing to consider is that fiduciary warranties offered by some plan sponsors typically provide little value. Coverage is so broad that employers rarely have the opportunity to collect damages. Employers must also ensure they abide by the numerous regulations the Internal Revenue Service (IRS) places on employer-sponsored 401(k) plans. The IRS enforces many 401(k) program rules because employers receive the benefit of a tax deduction for amounts contributed to retirement savings.
Working with clients to establish 401(k) retirement savings plans for employees is one of the top employee benefit services offered at Axcet HR Solutions. Whether employers desire to set up accounts on a pre-tax or post-tax basis, we can help. At Axcet HR Solutions, we have been serving Kansas City-area businesses since 1988.
Health Savings Account and/or Flexible Spending Account
A health savings account (HSA) is a benefit that allows employees to set money aside from their paycheck to pay for out-of-pocket medical expenses on a pre-tax basis. This option is only available to employees who elect a health insurance plan with a high deductible. Examples of HSA-eligible expenses include co-pays, deductibles, prescriptions, and some non-covered medical, dental, or vision services.
The funds from an HSA account roll over at the end of each calendar year if employees do not use everything they contributed. Some HSA accounts earn interest on the unused balance, which is non-taxable to the employee.
A flexible spending account gives employees the option to set aside pre-tax dollars to pay for healthcare expenses or dependent care expenses they incur while working. The healthcare FSA differs from an HSA because employees do not need to enroll in a high deductible health insurance plan to take advantage of it.
Another difference between the two types of health accounts is that people enrolled in an FSA must use their funds by the end of the year or they automatically forfeit them. Employers can contribute to either HSA or FSA accounts for employees but have no legal obligation to do so. However, it can be beneficial for them to contribute towards this benefit from an employee recruitment and satisfaction standpoint.
Short-Term and Long-Term Disability Insurance
Providing employees with the option to pay a portion of the premium towards short-term and long-term disability insurance can provide valuable peace of mind. Should an accident or illness keep them out of work for an extended time, employees know they have coverage and will not have to use their entire allotment of paid time off.
Short-term disability insurance typically covers 60 to 70% of an employee’s base salary. The employee may have a short waiting period before becoming eligible to collect short-term disability payments depending on policy specifications. Two weeks is a common waiting period. The maximum time an employee can collect short-term disability benefits can range from a few months to one year.
Long-term disability insurance typically covers 40 to 60 percent of an employee’s base salary. Most policies require employees to wait a minimum of 90 days or to have exhausted short-term disability benefits before applying for long-term disability benefits. Payments from a long-term disability insurance policy end when the employee’s disability ends. Should the same disability reoccur later, most policies limit payments to a specific number of years or when the employee retires, whichever comes first.
The definition of disability can vary from one insurance carrier to the next. Some provide benefits only if employees cannot work in any job for which they are qualified while others offer benefits if employees cannot perform their usual job.
Additionally, some short-term and long-term disability insurance providers offer partial disability benefits and others do not. The definition of partial disability is when employees have an injury or illness that forces them to work part-time instead of full-time.
By working with our employee benefits solution company, employers can obtain the best rates and coverage options for disability insurance due to our collective bargaining power.
Employee Assistance Program
As much as employees may try not to let personal issues interfere with their work performance, that is not always possible. From financial stress to facing a divorce to problems with addiction, people need resources to overcome their struggles.
An employee assistance program (EAP) provides employees with free or low-cost intervention like counseling to deal with their issues. The set-up of an EAP involves the employee scheduling an appointment with a contracted service provider for a confidential initial session and determining a plan from there. Axcet HR Solutions is available to assist employers with locating EAP providers and negotiating favorable rates.
Schedule a Consultation with the Top Employee Benefits Solution Provider in Kansas City
Axcet HR Solutions invites small and mid-sized employers to request a consultation to learn more about our services. We offer complete human resources, payroll administration, and risk management services in addition to employee benefits.