Selection of suitable service packages for SMEs
January 27, 2017
In addition to health insurance, look at the type of insurance you can get for your small business.
What can you expect from your service package?
This is a question most of new employees would like to answer. But what are the benefits for SMEs? Forbes defines many benefits for SMEs such as “health insurance, life insurance, disability insurance, probably retirement plan”. However, this is not necessarily true for all SMEs in the market. If you provide all these advantages, there are many plans that will provide these benefits.
What kind of benefits are there in the benefit package?
This is not an easy answer as each company has different employees with different budgets and different needs. But let’s look at what can be offered in packages of benefits for SMEs. And remember that the package of profits for SMEs will be wonderful for employees. They not only give peace of mind to your employees, they can not only encourage them to approach, but also save money as a tax approach.
Benefits package for SMEs
This could be the first thing an employee would expect from a performance package. Fortunately, group health insurance is offered in many shapes and sizes to suit your budget and your specific needs. The major difference in the plan is whether it is a priority provider provision plan (PPO) or a health management plan (HMO).
HMO plan: HMO plan may be cheaper than PPO for premiums, but at this low cost and less flexibility. If you include this plan in a small business program, your staff may need a family physician to adjust to receive a referral from a specialist. Employees should also receive “networked” medical care. In other words, it does not cooperate only with doctors and hospitals affiliated with insurance companies.
PPO Plan: In brief, PPO is an organization that cooperates with contract medical institutions to build a network. You can also use this provider’s network, but you can also choose doctors outside the network by paying more. Normally, this type of plan does not require a family physician. Usually, there is no need to introduce experts or advanced care. This plan costs more than options like HMO.
Small benefit pension
As an owner of a small business, there are many ways to provide health insurance to your employees. Please confirm that you understand the details of the selected specific insurance product. In particular, each plan has specific restrictions, exclusions, and definitions that differ from plan to plan.
There are several options in the retirement plan that you can add to the benefits of a small business. The general choice is a defined contribution type system. 401 (k) plan. You can choose to provide 401 (k) that allows employees to put aside part of salary. Next, you can balance the proportion of everything you put aside. This is a wonderful plan that you can use a variety of budgets, because you can limit the number of people you can contribute, decide how much to fit together and set requirements when employees are eligible. Your generosity can motivate employees to stay in your company. In addition, 401 (k) is planned to qualify for contributions so that they can be deducted for employers.
Another option is the performance plan. As most people know, it is a pension. That is a little more duty of the employer side. After retirement we need to provide more money to the month. This is interesting for some employees.
Life insurance and disability insurance as part of small business program
According to the Harvard Business Review, these benefits are not very high in the desire list of SME employees such as healthcare and retirement. However, these are great benefits for employees as unfortunate security of serious injury or death.
For the benefit of small and medium enterprises, you can choose from two categories of life insurance: long-term insurance and long-term insurance. Life insurance is life insurance life insurance. If an employee’s family dies unexpectedly within a certain period, life insurance is life insurance life insurance. Risk life insurance often has lower monthly premiums. If you expect your employees to earn more benefits from life insurance contracts, you can think of permanent life insurance contracts.
Disability insurance is a wonderful way to set up a safety net in case of injury or illness (physical or mental) that prevents employees from working for a certain period of time. Please note that this is different from insurance policies of employees who handle more injuries related to work.
All insurance plans have specific restrictions and exclusions. Therefore, please make sure you understand the specific terms of the plan you selected. This article only contains general information and does not describe all the details that apply to a particular policy.
Is it a package for SME worth cost?
Glassdoor’s Occupational Credit Study revealed that 79% of employees prefer more benefits than salary increases. Given this fact and the fact that adding a small business package can save taxes, the benefit for you is important.
By providing small business packages to employees, we can maintain competitiveness without raising wages for everyone. By constantly providing employees with the appropriate level of security, choosing a plan not to collapse banks will always keep prices low. You can choose from the above policies and customize options for each budget or type of employee.
This article is for general information and is not tax, accounting, employment or legal advice. Please contact your tax, accounting, technical or legal counsel.