| What is the major concern for an employer? Taking | | | | 401(k) and Savings Benefits: Many small companies |
| very good care of their employees is a must. Many | | | | have a 401(k) plan or savings plan in place, but hardly |
| have perceived that as an expensive task to | | | | any money is contributed to these plans. In spite of this |
| overcome, as it means providing the employee with | | | | situation, 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 there | | | | of the small company contributions lie at the maximum |
| are many ways in which employees can be given | | | | of $1,000. Hence funding such saving programs would |
| benefits that do not drill too deep a hole into the | | | | be 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 and | | | | ESOP, 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 small | | | | also 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 offers | | | | where an employee can either have a fixed income |
| deductibles in the range $1,500 - $2,250 for single | | | | upon retirement or contribute to the pension fund. |
| people and $3,000 - $4,500 for families. Medical | | | | Offering assistance to the employees who have |
| insurance is claimed using an MSA in a manner similar | | | | relocated 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 good | | | | travelers can be offered perks like being able to take |
| option for those employers who want to involve their | | | | their 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 Savings | | | | insurance for pets, etc… give a sense of |
| Account and HRA, Healthcare Reimbursement | | | | belonging to the employee. Having a child-care center |
| Account, among many others. | | | | is a great way to provide support to working mothers. |