Employee Benefit Plans
Finding good employees is as challenging as ever. Keeping them can be just as difficult. One way you can make your business stand out is through the benefits you offer.
Most businesses share a common set of reasons for providing business enhancements that benefit employees:
- Attract and retain quality employees
- Ensure retention of key employees
- Take advantage of tax deductions associated with providing benefits
- Use the business “pocketbook” to provide health, disability insurance, life insurance, long-term care, and retirement protection for the business owners.
Your current employee benefit plan may provide current protection to employees in the event of illness, disability, or death.
To enhance your employee benefit plan, you may choose to add coverage for:
Employee communication plans and online benefit services are additional ways to enhance your benefit program. Placing benefit communications online provides an opportunity to improve productivity and lower costs.
Enhance Your Plan with Long-Term Care
The most effective way to attract and retain quality employees is to offer them a comprehensive benefit package.
Common benefits include health insurance, life insurance, disability income insurance, and retirement and savings plans. These insurance benefits may not provide adequate coverage for employees or their families should they require long-term care services. Many people in the workplace are affected by long-term care by either its cost or by caring for a family member. This affects not only your employees but your business as well.
If you or your employees are affected by the need for long-term care, which type of insurance will cover the costs? Disability income insurance helps replace a portion of lost income. Health insurance policies pay for expenses due to acute medical conditions that tend to be short-term in duration such as broken bones or heart attacks.
If you or your employees had a long-term chronic medical condition such as a stroke or disabling disease, long-term care insurance is the most feasible insurance option.
By promoting employee access to information about long-term care insurance, you can promote goodwill which can potentially lead to increased productivity and reduced turnover. It can also minimize the possibility of your employees becoming distracted, encountering frequent personal interruptions or increased stress related to caregiving activities
Long-term care insurance is offered through Northwestern Long Term Care Insurance Company.
Northwestern Long Term Care Insurance Company, a subsidiary of The Northwestern Mutual Life Insurance Company offers individual long-term care insurance with a MultiLife premium discount.
Policies issued in PA, NJ and NY with the MultiLife Discount have the form number RS.LTC.ML(1101). In NJ the MultiLife Discount is available for ages 40 and above only.
Northwestern Long Term Care Insurance Company's long-term care insurance policy contains exclusions and limitations.
NMFN LTC 007 (01/05)
Policy forms RS.LTC.(0708) and RS.LTC.ML.(0708)
Retirement plans, like other employee benefits, are designed to help recruit, reward and retain quality employees. They provide retirement benefits on a tax-favored basis.
Retirement plans vary according to contributors to the plan, ease of implementation and administration, tax advantages, rules for timing of withdrawals, and amount of benefits.
There are two general categories of employer-provided retirement benefit plans:
Qualified Retirement Plans
- Typically cover substantially all employees.
- Have the special tax advantages of an immediate tax deduction and other tax benefits.
- Are subject to strict and somewhat complex rules to obtain tax advantages.
- Provide retirement benefits to select key employees.
- Can be used to replace or enhance qualified benefits.
- Have tax advantages but generally are not as favorable as they are with qualified plans.
- Are not subject to the strict rules governing qualified plans.
Employees may also participate in personal individual retirement plans that offer tax advantages. The employer may assist employees in setting up these plans to enhance retirement benefits without all the requirements of a qualified plan.
There are two general types of individual retirement plans:
Some plans allow for the purchase of life insurance policies (other than an IRA or TDA plan) to minimize the financial risk of the employee dying prior to reaching the retirement plan’s normal retirement age.
Employer-sponsored retirement plans can further enhance your business. By helping your employees build future financial security through a work-related benefit, you may increase the likelihood that valued employees will make a long-term commitment to your business.
Plan design will generally depend on how your business is structured (form of business entity), the number of workers you employ, and your ability to make contributions on behalf of employees.