#022: Attract and Retain with Employee Benefits

It is harder than ever to attract and retain employees. Employee Benefits can make your business seem more appealing than the competition when it comes to new applicants. Employee benefits can span an array of offerings like health and dental insurance, retirement plans, paid time off, work hour flexibility, remote work, company vehicles or phones, and so much more. When it comes to each of these, certain provisions, rules, and tax implications apply.

Generally, companies smaller than 50 employees are not required to offer or pay for health insurance or other benefits. However, if you decide to offer benefits to one employee, all other employees who match the qualifications and are eligible must also be offered equal benefits. You must not discriminate against offering benefits if all rules pertaining to the benefit are met by the employee.

Offerings such as insurance, retirement, and PTO should be offered under a written plan known as a Cafeteria Plan. These outline the types of benefits, how much (if any) the business will pay for or match, and how much will be allocated as taxable income. Other benefits like company vehicles, phones, computers, business meals, etc should be outlined as a Non-Cafeteria Plan in the employee manual. This explains how the company will reimburse employees for incurred expenses and how this will be reflected as taxable income or deductions for both the employee and employer.

While Employee Benefits are a major way to attract new employees there is a fair amount of planning and documenting that must occur. We dive into all the details in our course, Up Level Your Small Business IQ which you can check out on our website!

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What’s Inside: 

• How to better attract and retain employees.
• What are Employee Benefits?
• What size business requires benefit offerings?
• What are Employee Benefit Provisions?
• What are the tax implications of Employee Benefits?

Mentioned In This Episode:

Modern CPA Online
ModernCPA - YouTube