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7 Sep , 2010
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Many small-business owners mistakenly believe they cannot afford to offer benefits but while going without benefits may boost your bottom line in the short run, it could seriously impact your business’s chances for long-term prosperity. Heading the list of must-have benefits is medical insurance, but many job applicants also seek a retirement plan, disability insurance and more. Give employees the benefits they value and they’ll be more satisfied, miss fewer workdays, be less likely to quit, and have higher commitment to meeting the company’s goals. The research shows that when employees feel their benefits needs are satisfied, they’re more productive. The law requires employers to provide employees with certain benefits. You must:
- Give employees time off to vote, serve on a jury and perform military service.
- Comply with all workers’ compensation requirements.
- Withhold FICA taxes from employees’ paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits.
- Pay state and federal unemployment taxes, thus providing benefits for unemployed workers.
- Contribute to state short-term disability programs in states where such programs exist.
- Comply with the Federal Family and Medical Leave (FMLA). You are not required to provide:
- Retirement plans
- Health plans (except in Hawaii)
- Dental or vision plans
- Life insurance plans
- Paid vacations, holidays or sick leave In reality, however, most companies offer some or all of these benefits to stay competitive. Most employers provide paid holidays for New Year’s, Memorial Day, Independence Day, Labor Day and Thanksgiving Day and Christmas day.
