2.  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

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

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

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

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

7.  Help pay education costs when employee continues to work

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

9.  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%

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

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

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

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

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

16.  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

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

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

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