A Start-Up’s Guide to Employment Benefits

A Group of Employees

You’ve successfully started your business and the clients are beginning to pour in. The question now is how can you make your employees happy? Start by providing them a good benefits package. This will ensure that they don’t jump ship the moment they encounter difficulties.

Some start-ups that have limited time and resources usually employ Consolidated Omnibus Budget Reconciliation Act or COBRA administration services to reduce their responsibility. Below are some of the benefits that the law requires:

  • Adhere to the FMLA (Family and Medical Leave Act)
  • Employers should take part in a short-term disability program if based in a state where it exists.
  • Offer benefits to unemployed members of the community by paying federal and state unemployment taxes
  • Employers should pay their share of FICA taxes and deduct these from paychecks of their employees.
  • Offer employees disability and retirement benefits
  • Adhere to all compensation requirements necessary for employees
  • Provide workers time off to conduct military service, serve jury duty, or vote

On the other hand, you don’t need to offer:

  • Sick leaves, paid vacations, or holidays
  • Life insurance plans
  • Vision or dental plans
  • Health plans (excluding Hawaii)
  • Retirement plans

Nevertheless, some start-ups would rather provide their employees most of these benefits to stand out from the competition. The majority of employers offer paid holidays for Christmas Day, Thanksgiving Day, Labor Day, Independence Day, Memorial Day, and New Year’s Day. Otherwise, you could give your employees the freedom to take time off during these holidays without pay or use their vacation days on religious holidays.

Keep in mind that most of your full-time workers anticipate getting a week or two of paid vacation each year. When you’re explaining your vacation policy to them, indicate the allotted time they could request for time off and if they should accomplish a form.

Protect the future of your business by keeping your employees happy. After all, they’re your brand ambassadors that will take care of your clients and uphold your brand name.