Employee Benefits
Employers offer benefits as a way to recruit and retain quality employees. The benefits typically include medical insurance. However, additional lines of insurance often round out the menu of benefits that employers can offer. The employer, the employee or both can contribute to the cost of the coverage. The cost to the employer is a qualified business expense.
The employee cost of some of the lines of coverage can be deducted on a pre-tax basis which subsequently lowers the employee’s as well as the employer’s tax liabilities.
Medical Insurance
Whether coverage has more traditional “first dollar coverage” or is more “consumer driven” focused, we understand that the plan design must fit the needs of the group. Often, this can be enhanced by designing a plan where the employer offers more than one plan design to the employees which allows the employee to pick the plan that best suits his particular needs. The employer determines how much he is going to contribute towards the cost and the employee pays any difference. We go to great lengths to make sure our clients know and understand their options. Click here to fill out a Group census form.
Health Savings Accounts (HSA) became law effective January 1, 2004. When a participant is enrolled in a qualified high deductible health plans (HDHP), he can establish a HSA. The health plan must have a minimum deductible of $1000 for single coverage and $2000 for family coverage and meet the federal guidelines for a HDHP. Deposits into the HSA are tax-free, earn interest tax-free, and are not taxed as long as the funds are used for qualified medical expenses. Funds on deposit at years end roll over to the next year. Additional features of an HSA are:
– HSA balance is used to pay for qualified routine health care expenses
– HSA is owned and controlled by the individual, the account holder
– HSA balance and end of year rollovers to the next year
– HSA is portable, the funds remain with the account holder regardless of employment
(click here for HSA details)
Supplemental Coverage
Supplemental coverage helps the employer broaden the scope and range of employee benefits that are offered. Supplemental coverages cover areas that the medical insurance does not, thus they supplement the medical insurance. They include:
– Short term and long term disability
– Life
– Dental
– Vision
– Accident/disability
– Hospital confinement indemnity
– Specified Health Event
– Cancer
– Hospital intensive care
– Long-Term Care
– International Travel
For quote – click here
For many lines of supplemental coverage, the coverage can be voluntary. Voluntary means that the employer makes the coverage available to the employees who elect the coverage(s) which best meet each individual employee’s needs. The employee pays the premium for the elected coverage(s) through payroll deduction. In some cases, the premium can be deducted on a pre-tax basis. Supplemental coverage allows employees access to insurance coverage on a group basis with group pricing.
Plan Administration
Premium Only Plan (POP) is an excellent way to enhance the benefit package. In implementing a POP, the qualified portion of the insurance premiums that the employee pays can be deducted on a pre-tax basis, thus, reducing both the employee and the employer payroll taxes.
Flexible spending accounts for medical and dependent care are further ways to increase the employee benefits while allowing the employees to establish tax-free accounts to fund qualified medical and dependent care expenses.
Life Insurance
Many employees rely in the employer for life insurance coverage. Life coverage can be designed as a flat amount, a function of annual salary, or a buy up option. Employees can voluntarily elect additional coverage for their family members as well. Click here to fill out Group census form.
Disability Insurance
Both short term and long term: Employers can help their employees protect against an unexpected loss of income. Whether the need is short term, typically up to six months or long term, usually to age 65, plans can be designed to provide income replacement should a disability occur. These plans can either be funded by the employer or by the employee, depending on the plan type. Click here to fill out Group census form.
Dental Insurance
Plans can be designed with the annual maximum, annual deductible, copays, and coinsurance that you want. Depending on the group size, plans can be fully funded or self-funded; and paid by the employer or wholly paid by the employee. Dental plan designs can be fee-for-service, preferred provider option (PPO), or dental maintenance option (DMO) to best meet your needs. Click here to fill out Group census form.
Vision Insurance
Growing in popularity, employees are asking for vision insurance. This coverage can cover the cost of the eye exam, except for an office visit co-pay, the lenses, and frames at a level that provides the benefit you want to offer. Click here to fill out Group census form.
Long Term Care
By purchasing long term care through the employer, you can take advantage of group purchasing power. Furthermore, some of the carriers allow the employee’s immediate family members to be covered as well.
International Medical Insurance
If you plan to travel abroad for a short time or extensively, you can make sure that you have medical coverage should you become ill while abroad. This coverage is also great for any employee’s you may have working outside of the country. Should you have family members from “the old country” visiting the USA, you can help make sure they have medical coverage while they are here in the states. Click here to fill out a Group Travel Census form.