Perhaps you worry about keeping your star employees and are considering adding to the benefits package you currently offer.
However, proceeding without sound advice could be hazardous to the health of your company and pose possible legal entanglements.
Your benefits package must contain everything the law requires, including sections pertaining to:
- Workers’ compensation compliance
- FICA tax withholding
- Compliance with state and federal unemployment taxes
- Employee time off for jury duty, voting or military service
Your benefits package probably offers a company healthcare plan and retirement plan plus paid vacations, holidays, sick leave and bereavement leave. Most companies offer such benefits and employees at every level expect to receive them.
Mistakes to avoid
In considering making your benefits plan more attractive, you may wish to add a dental plan as well as a life insurance plan. You may have ideas about other benefits for your executives that come with tax advantages. Mistakes, however, are easy to make. Remember that the IRS and the U.S. Department of Labor scrutinize the formation or restructuring of healthcare and retirement plans for possible legal missteps. In addition, if you offer tax-advantaged benefits to one set of employees, you must offer them to all or face possible legal repercussions.
The success of your company may have reached a level where retaining talented employees is increasingly essential to further profitability. Increasing the options available in your benefits package is one way to retain good employees. A professional review of your current benefits plan and sound guidance regarding the proposed changes will help you avoid any unwanted legal issues.