Employee Benefits Low Cost?

What is the major concern for an employer? Taking401(k) and Savings Benefits: Many small companies
very good care of their employees is a must. Manyhave a 401(k) plan or savings plan in place, but hardly
have perceived that as an expensive task toany money is contributed to these plans. In spite of this
overcome, as it means providing the employee withsituation, growing companies do not fund more than
vacations, bonuses, incentive pay, insurance,$2,500 every year to an employee's saving plan. Most
etc… While all of them are valid reasons thereof the small company contributions lie at the maximum
are many ways in which employees can be givenof $1,000. Hence funding such saving programs would
benefits that do not drill too deep a hole into thebe a good benefit for the employee. Also identifying a
employer's pocket.tax-saving scheme would help the employer also.
Medical Spending Accounts: MSAs offer benefits andESOP, Employee Stock Ownership Program permits
cost-control advantages like no other policy.the employees to buy stocks in the firm. Stocks can
Self-employed people can use this as also a smallalso be offered as incentives and bonuses. ESOP has
group of 50 people. There are two parts to the MSA,a tax-deferred status that is valid until the retirement of
one is the high-deductible health-insurance plan (HDHP)the employee. Similarly Pension Plans can be devised
and the other is the insurance policy. HDHP offerswhere an employee can either have a fixed income
deductibles in the range $1,500 - $2,250 for singleupon retirement or contribute to the pension fund.
people and $3,000 - $4,500 for families. MedicalOffering assistance to the employees who have
insurance is claimed using an MSA in a manner similarrelocated to work with the firm can be a good way to
to any other insurance policy.build good-will that will go a long way. Business
CDH, or Consumer-driven Healthcare plans are a goodtravelers can be offered perks like being able to take
option for those employers who want to involve theirtheir families on a tour once a year. "Life-style" benefits
employees in framing insurance policies for the firm.like grocery coupons, dry-clean services, health
There are options like HSA, Healthcare Savingsinsurance for pets, etc… give a sense of
Account and HRA, Healthcare Reimbursementbelonging to the employee. Having a child-care center
Account, among many others.is a great way to provide support to working mothers.