Empolyee Benefits for Small Businesses in South Carolina

An adequate employee benefit program is essential in business today, no matter what the size of
your company. It's a necessary tool for attracting new employees and retaining current ones. In
fact, when it comes to employee retention, benefits can make or break the deal. For instance, three
out of four workers consider employee benefits a decisive factor when evaluating new job
opportunities.

Employee benefits like health or life insurance and retirement plans can be costly, which is why
almost all small employers share the costs with their employees. Another option for keeping costs
in check is to offer a more modest benefits package. There are also voluntary benefit programs
that allow employees to purchase or increase their benefits themselves, often through automatic
payroll deduction. It is also a good idea to consult with your accountant and attorney before
establishing or expanding an employee benefits program. Your financial advisor and insurance
professional can help you select the right mix of benefits and guide you through the various plan
options.

Health Insurance
The one thing that almost every employee wants and needs is health insurance. More than 80
percent of employees say that hospital and medical coverage is the most important benefit an
employer can provide. Fortunately, there are plenty of options, each offering tradeoffs between
flexibility and affordability.

One way to keep costs in check is to share the cost with employees. Another option is to choose a
less expensive plan. The most common health plans are health maintenance organizations
(HMOs), preferred provider organizations (PPOs), point of service (POS) plans and indemnity
plans. Choosing the right program for your employees involves careful tradeoffs between cost
and choice. If cost is your paramount concern, an HMO or POS plan might be your best bet. If
choice is what you're after, indemnity plans and PPOs often offer the greatest flexibility when it
comes to picking providers.

Life Insurance
Group life insurance is a relatively inexpensive benefit that can be easily supplemented by
voluntary coverage. Typically, employers provide a life insurance benefit equal to one to two times
the employee's base salary, paying either all or most of the premium cost. Some employers also
allow those wishing more coverage for themselves or their families to increase the death benefit or
add family members through payroll deduction. Because there are cost efficiencies in issuing one
policy to cover all employees, the rates are often quite low. Consult with an insurance professional
who can check around to make sure you're getting a competitive price.

Disability Income Insurance
Disability income insurance is one of the least understood types of insurance, but also one of the
most important. Many people mistakenly believe that workers who become disabled will receive
disability income either through Social Security, Worker's Compensation or both. But Social
Security disability benefits are often quite restrictive and employees don't qualify for Worker's
Compensation unless the disabling illness or injury happened on the job.

Employer-sponsored disability income insurance is much less restrictive and falls into two main
categories. Short-term disability income insurance plans usually offer benefits that are paid for a
maximum of 26 weeks, while long-term disability benefits generally continue for the length of the
disability or until retirement age.

Cost can be affected by adjusting the maximum monthly benefit, benefit periods and waiting
periods before benefits begin. This is another area where it's sometimes possible to allow
employees to purchase additional coverage either by purchasing increased benefits under the
group program or through a voluntary benefit program.

Dental and Vision Insurance
Once offered by only a few employers, dental insurance is now offered by 40 percent of small
businesses. Dental insurance plans generally cover part or all of the cost of cleaning, X-rays,
annual oral exams and fillings. Some plans also cover major items such as crowns and restorative
work. Most plans do not cover orthodontics. In some areas, dental maintenance organizations
(DMOs) may be available. They function in much the same way as medical HMOs and may be less
expensive than traditional plans.

Vision plans are also growing in popularity. A typical vision plan includes an annual routine eye
exam, an annual contribution towards prescription eyewear and
a glaucoma screening.