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