Are you trying to piece together an employee benefits package for the first time? Perhaps you’re a growing business looking to cut costs yet still provide your team with highly desired benefits. In either one of these scenarios, voluntary benefits could be the solution for you!
Voluntary benefits are insurance products that are not paid for by the employer, but are offered to employees at rates that are lower than they could obtain on their own. A few examples of voluntary benefits are dental, vision, supplemental health, cancer insurance, life and disability.
Many employers prefer voluntary benefits versus offering full-suite employer-sponsored packages for the following reasons:
- Employers can offer extremely robust benefits packages with little to no employer costs.
- Additional administrative costs can be offset by the payroll tax savings the employer gains from Section 125.
- Employees also enjoy low costs when set in comparison to individual plans (by utilizing the purchasing power of your group, the employees get access to benefits at low group rates).
- Customization: Employees choose from options that fit their individual health care situations and don’t pay for the extra products they do not want or need.
- Voluntary benefits offered through your organization may provide employees with insurance products they otherwise would not be able to obtain at all (especially if the select product is only offered through employer sponsored plans and not on an individual basis).
Need some help putting together a plan that makes financial sense for both you and your employees? Your HR Advisor can point you in right direction! Get immediate assistance by calling (877) 636-9525.