Some workplace benefits are required, and others are optional. If you’re wondering what you need to provide to your employees to keep them motivated to work for you, here are the best employee benefits for small businesses.
Benefit Requirements
Small businesses are typically required to provide a few benefits, according to the Small Business Administration. They must match Social Security taxes, which are withheld from employees’ paychecks, and they must also match the rate of the taxes for each employee.
Small businesses also need to enroll in Workers’ Compensation insurance policies with a commercial, self-insured, or state policy. Depending on the state, they may also need to acquire disability insurance policies.
If your company is private, with 50 or more employees, you’re required to provide family and medical leave benefits, which allow an employee to take 12 weeks of unpaid leave each year for certain family and medical reasons. Finally, you’re likely to be on the hook for unemployment insurance taxes. You’ll need to register your company with your state’s workforce agency if this is the case.
Health Insurance
Providing health insurance may not be required, but employees expect businesses to offer it. Health insurance can get expensive quickly for an employer—how can you offer employees health benefits without going out of business? Opting for group health insurance or a high-deductible plan is the best move for a small business, as it involves sharing the cost of health insurance with your employees.
Paid Time Off
Two-thirds of small companies offer employees paid time off (PTO), so it has become another expectation. Help your employees avoid burnout by encouraging a healthy work-life balance by providing PTO.
Retirement Planning
Setting up a retirement plan for your employees is more affordable than ever with federal tax breaks. A Savings Incentive Match Plan for Employees individual retirement account (SIMPLE IRA) or a 401(k) is a great way to incentivize your workforce while earning a nice tax break.
Now that you know the best employee benefits for small businesses, you can get to work making your business friendlier to employees while helping your company.
