Employee Benefits for Texas Small Business

Small business owners face an increasingly challenging task
in offering employee benefits.  Employees want, if not
expect, various benefits, including group health insurance,
dental, disability, etc.  The cost of providing these types
of plans can often be prohibitive to a small business
simply trying to make a profit. The cookie-cutter options
do not work. 

But there is hope, but it requires creativity and knowledge.
First, the employer must gauge both the company’s and the
employee’s budgetary tolerance for benefits.  Depending
upon the budget available, there are three viable options:
group major medical, partially self-funded medical, or
limited benefits health insurance.  Each solution offers
varying requirements of the employer and can be selected
on such a basis.

Once the top priority of health insurance is addressed,
there are other specific strategies that can be integrated
so as to reduce costs and exposure for all involved. A high
deductible ($2500 or higher) can be combined with a Health
Reimbursement Account, or HRA, (controlled and funded by
the employer). 

If the HRA is not feasible, the high deductible plan can
be offered alongside a voluntary supplemental medical
plan.  The offering of various voluntary benefit options
have a dual value to employers: some types of options can
reduce payroll taxes and the various plans are voluntary
to the employee so they can choose to participate in the
options that suit their individual needs.

Unfortunately, many employers try to predict what their
employees want or need without truly knowing. 
Statistically, over 50% of employees will participate in
well-communicated and enrolled voluntary benefit plan
regardless of income or industry.  By offering a full
suite of voluntary benefits, an employer can go a long
way toward satisfying their employee’s desire for benefits
without any cost to the company. 

Finally, a small business must utilize every advantage
available for offering qualified benefits through a
Premium Only Plan (POP) or cafeteria plan.  Many
employers simple assume that they do not qualify or
that the administration is too difficult to guarantee
compliance.  Contrary to this perception, the process
is perhaps the simplest program involving the IRS.

A small business owner should seek a benefits consultant,
insurance broker or independent agent who takes the time
to understand the challenges.  An employer should do
just enough research to know which questions to ask. 
Despite the challenges, it is still possible to offer
a valuable benefit plan without sacrificing the bottom
line – or the future of the business.