 1/3 (33%) of full-time employee compensation  Common benefits ◦ Health insurance ◦ Dental insurance ◦ Life insurance ◦ Sick leave ◦ Retirement ◦ Vacation ◦ Disability insurance  Usually non-taxable—so taxes reduced

 Health Insurance ◦ Doctor visits ◦ Prescriptions ◦ Hospital stays  Dental Insurance ◦ Preventive care ◦ Dental work  Flexible Spending / Savings Plans

 Replaces some income if employee unable to work for extended period of time due to accident or illness  Money paid directly to employee

 Pays beneficiaries who depend on employee’s income if employee dies

 Helps employees save for retirement ◦ Pension Plan ◦ 401K  Employers often contribute additional money when employee contributes ◦ 401K Matching ◦ Free money for employee!

 Help pay education costs when employee continues to work

Some common benefits offered by small business to full-time staff with at least 1 year of service:

 Paid Vacation: offered by 75% of small businesses  Employee Health Insurance: 61%  Paid Sick Leave: 59%  Disability Insurance: 41%  Education Reimbursement: 39%  Retirement: 30%  Life Insurance: 29%  Dental Insurance: 24%

 Help recruit good employees and retain them (reduce turnover)  Staff retention – #1 reason

 Pay directly deposited into bank account  Can choose more than one account— make saving automatic

 Take responsibility for health care by participating in a wellness plan  Wellness Plans ◦ Fitness programs ◦ Smoking cessation ◦ Stress reduction  Reduce employee absenteeism  Increase productivity

 Purchase company products or services at a discount  Often overlooked as an employee benefit

 Lots of employees commute  Parking privileges may cover ◦ Payment of a monthly city transit pass ◦ Paying for vehicle parking with pre-tax dollars

 Professionally printed card; includes name, title, other contact information  Adds a level of professionalism and pride—employee can display name and title with professionally printed cards  Great advertising tool

 Money loaned to employee to purchase computer  Automatic payroll deduction to pay off the loan

 Limited amount of paid hours for providing community service during work hours

 Additional education or training may be needed to keep pace with changing demand of employment  Reimburse employees for all or a portion of costs