Ask your insurance agent about Group Health policies and how they will affect you. Typically, an employer must pay at least 50% of the lowest offered plan, so a Group Health policy is a great retention tool as the perceived value greatly exceeds the cost.
Group Dental Coverage is the benefit that is requested most by employees nationwide. While many employers offer dental coverage, there is a growing trend of requiring employees to pay 100% of the insurance premium via payroll deduction. There are two primary plans available — Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO).
Group Vision plans are inexpensive to offer yet employees love them. It is a separate plan that offers coverage for glasses lenses, frames, and contact lenses. Typical basic health insurance plans may cover routine eye exams, but they usually don’t provide any benefit for frames, lenses, or contacts. A group vision benefit is used to provide these things.
Employers have a wide variety of optional plan designs to customize a Group Life Insurance plan. Insurance Agent Jeff Lecoeuche’s optional coverage includes Voluntary Life insurance, Supplemental Life coverage, Accidental Death and Dismemberment policies, and Dependent Life insurance. The premium paid for Group Life Insurance is generally a business deduction, and this stand-alone contract is usually less expensive than the life coverage provided with medical / health insurance. It is also a great retention tool.
The valuable protection of Group Disability is available with low-cost, tax-deductible premiums and is an affordable method to provide coverage for your employees.
FLEXIBLE SPENDING ACCOUNTS (FSA) FLEXIBLE REIMBURSEMENT ARRANGEMENT (HRA) AND HEALTH SAVINGS ACCOUNTS (HSA)
These are ways to provide health insurance coverage that give tax advantages to both employers and employees. Each business has a different need so contact us for a free consultation.
401(K) RETIREMENT PLANS
401(K) plans are tax-deferred retirement savings plans for employees. The employer sets them up and each company has a slightly different 401(k). They are part of a family of retirement plans known as “defined contribution” plans – the amount contributed is defined by the employer or the employee.
When you join a 401(K) plan, you tell your employer how much money you want to contribute to your account. This amount is deducted from your salary before taxes are applied, so you pay less income tax. More importantly, the money is deducted even before you have received it, making it the easiest savings plan to contribute to. Your employer may match a portion of your contribution.
The money is invested by the plan administrator (on your behalf) in mutual funds, bonds, money market accounts, etc. You decide the mix of investments. They usually have a list of investment vehicles you can choose from as well as some guidelines for the level of risk you are willing to take. Since the plan is an incentive for retirement savings, there is one condition: if you withdraw the money before you are 59.5 years old, you will have to pay tax as well as a 10% penalty fine to the IRS.