Benefits Planning: Overview
It’s inevitable: small businesses that are successful require greater forethought and maneuvering to reduce their liabilities. Regardless of size or how a business is held, threats can come from all sides-the government, clients, competitors and within the company. Employees, whom businesses are often dependent upon, are a major source of lawsuits due to employment practices and employee benefits administration. Errors made in the administration of employee benefits can be costly, in the form of penalties, legal action and loss of tax benefits. It’s an area of vulnerability that is remedied only with hyper-attention to details, deadlines and fiduciary responsibilities.
Properly managed and developed employee benefits programs have a win-win for both employee and employer. Statistically, you will have happier and more productive employees. Benefits that extend to non-employee family members also go a long way toward reduction of employee friction. Hiring a firm to professionally manage the employees’ benefits package removes a layer of potential miscommunication between employer and employee and gives them a positive if not bulletproof perception in the handling of their health benefits or retirement plans.
Employers can often feel that employee benefits are a necessary burden. However, the benefits to employers are intrinsic. They have happier, more solid employees, and they can leverage their plans to attract top-notch talent. What’s more, the amount of their contribution may reduce their overall tax liability while strengthening the workforce. The right employee-benefits firm is a form of protection for the employer, and its knowledge and guidance should be at the disposal of the businesses it helps.
The most popular employee benefits, health and retirement plans are the most prone to detrimental errors. For example, a common error with health plans is the failure to enroll new employees during the open-enrollment time frame. This will result in the employees’ being excluded from the health plan. Should those employees have a medical need, there wouldn’t be coverage, and they may be forced to sue their employer. If the business manages its own employee plans in-house, it must be aware of deadlines and be organized to ensure that paperwork is submitted properly and in a timely manner.
This is where Sonus Benefits comes in. We support you and your employees as you navigate what is best for the health of your business. We track deadlines, changes and opportunities in the benefits world so that you can focus on other aspects of running your business. If you have any questions about how our team can help you, please reach out and contact us.
