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