Bennies That Fit the Bill
Let's get real: You want to offer great benefits, but you also don't want to
go broke. These packages were designed with both goals in mind, based on your
economic circumstances.
|
| BENEFIT |
ECONOMY PLAN |
MODERATE PACKAGE |
DELUXE PLAN |
|
| HEALTH INSURANCE |
HEALTH MAINTENANCE ORG.* |
INDEMNITY PLAN** |
INDEMNITY PLAN** |
| Annual deductible |
None |
$500-$2,500 (individual) |
$100 to $500 (individual) |
| No. of deductibles/family |
NA |
3 |
2 |
| Co-payment |
$10 to $15 per visit; similar fees for prescription drugs |
NA |
NA |
| Coverage |
100% for doctor visits after co-pay 80-100% for hospital care |
80% of reasonable and customary charges up to $5,000, then 100%
Prescription drugs optional |
80% to 100% of charges up to $2,000-$5,000, then 100%
Prescription drugs optional |
| Monthly premium, indiv. |
$143-$190 |
$180-$240 |
$240-$300 |
| Monthly premium, family of four |
$400-$530 |
$300-$475 |
$475-$1,000 |
|
| RETIREMENT PLAN |
SIMPLE IRA |
401(k) PLAN |
401(k) PLAN |
| Employee contribution |
Up to $6,000 a year |
Up to $10,000 of salary a year |
See details in column 2 |
| Employer contribution |
3% of employee's salary |
Discretionary |
PROFIT SHARING PLAN |
| Administrative cost |
Minimal. The plan can be purchased directly from no-load mutual fund company and administered internally |
25 employees: $1,500 to $2,500 a year |
Discretionary employer contributions (Administrative cost: $200 a year) |
|
| PAID LEAVE |
Sick days, vacation, holidays |
Sick days, vacation, personal days, holidays |
Sick days, vacation, personal days, holidays, comp days |
|
| SECTION 125 PAYROLL DEDUCTION PLAN |
NA |
Lets employees pay their share of premiums, plus dependent care and unreimbursed medical expenses in pre-tax dollars |
***See left, plus a choice of addi-tional employer-paid benefits like a wellness plan, childcare reim-bursement account, medical savings account; and employee-paid benefits such as group long-term care coverage |
| Administrative cost |
NA |
$400 to $500 a year for premium-only plan, plus $5 to $10 per employee per month for dependent care and medical accounts |
No additional administrative cost |
|
| LONG-TERM DISABILITY INSURANCE |
NA |
After 90 days, pays disabled employee 60% of salary up to $5,000 or $6,000 a month, for five years |
See left |
| Cost |
NA |
About $20 a month per employee, depending on average age of the group |
|
|
| SHORT-TERM DISABILITY INSURANCE |
NA |
NA |
Pays disabled employee a weekly benefit equal to 60% of salary up to $1K a week for 26 weeks |
| Cost |
NA |
NA |
Depending on group demographics, $25 to $30 a month per employee |
|
| LIFE INSURANCE |
NA |
Covers eligible employees for $20,000 or multiple of salary up to $50,000 |
One times salary without a cap |
| Cost |
NA |
$2 to $3 per employee per month, depending on average age of group |
Depends on employee demographics |
|
* Costs vary based on type of business, age of employees, co-payments, extent of coverage.
** Assumes group of 20 people or more. Availability and cost of health plans depend on state regulations. Many employers share the cost with employees.
*** Assumes 35 or more employees.
DATA: MORRIS FINANCIAL CONCEPTS, NORTHWEST BENEFITS GROUP, AND AMERICAN ECONOMIC GROUP.
|
