Employee Benefits

Employee benefits come in many varieties. Health insurance is generally what comes to mind first. Larger employers have options to offer more than 1 health plan. Insurance companies are bringing new product options, such as level funded plans, to smaller employer groups that can often reduce premium costs over similar products offerings in fully insured plans. Other types of employee benefits include life, disability, dental, vision, and retirement plans like 401(k)s. Employers may wish to offer plans that employees can purchase on a voluntary basis and pay via payroll deduction.

Qualified benefits must comply with federal and state statutes and must be offered to all eligible employees. Employers must pay at least 50% of the premium cost for employees in an employer group health plan. Employers have no obligation to pay any of the premium cost for dependents. Eligibility requirements must be achieved.

Non-qualified benefits can be offered to employees on an individual basis. Often small employers have 1 or 2 key employees that are essential to functioning of the entity. Employers can offer executive bonus plans that provided additional incentive for those key to remain with the employer for a specified period. Key person plans are designed to protect the employer.

Partnerships have their own unique concerns. Many have executed the terms of a buy-sell agreement but have not properly funded it. Failing to do so puts the company and families of the owners at risk.