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Group Health Insurance

If group health insurance is offered typically the employer pays 50% of the premium. In most states you would need a minimum of two employees and usually need 70% participation. Medical Bridge plans can be done on a group basis that help cover out of pocket costs expenses not covered by health insurance.

Retirement Plan Options

Which plan to choose? There seems to be so many. Which plan is right for your business? It depends on your situation. We commonly find that everyone refers to retirement plans as 401(k)’s in general. And, that’s okay, there are different types of plans other than the 401(k). To include Simple IRA’s, SEP’s, Solo 401(k), profit sharing plans, defined benefit plans.

The most common of these plans that we set up are the Simple IRA’s, 401(k)’s and the Solo 401(k).

Businesses with under 50 employees typically establish a Simple IRA, although you can set up a Simple plan with up to 100 employees. SIMPLE plans are easy to setup and are low cost to maintain, it’s a salary deferral plan with little administrative paperwork. Employers normally match 3% of annual pay.

Businesses with more than 50 or more employees that have higher compensated individuals will usually establish a 401(k), this permits high levels of salary deferrals by employees. These plans tend to have higher admin costs and maintenance.

A business owner with no employees can establish a solo 401(k) which allows a high level of salary deferral for sole proprietors and LLC’s. 1099 paid workers do not count as employees.

Questions about which plan is right for you, give us a call we can help.

Long Term Disability

One of the most overlooked and very important benefits that is offered or that can be offered. If offered on a group basis this benefit can be obtained at a lot lower cost vs. being obtained individually. This benefit usually has a 90 day elimination period, covering 60% of salary until age 65. Our most important asset is the ability to work and earn income.

Short Term Disability

Coverage to replace 60% of income beginning on the 8th day due to injury or sickness. Coverage will cover sickness, injury, and pregnancy. Usually payable for 13 weeks if you qualify.

Life Insurance

Usually done in two ways, group term life paid by the employer, or voluntary group life paid by the employee. The most common of the two are employer paid group term life. This is a nice added value to your employees in your benefit package and it’s done with pennies on the dollar.

Dental Care

Dental care can be elected voluntarily by employees or the employer can pay for this benefit. With routine dental checkups, employees can fight periodontal diseases and other severe health conditions such as heart disease. This will offset some of the cost of routine checkups and major procedures.

Vision Care

Vision care can be elected voluntarily by employees or the employer can pay for this benefit. If left unattended, eyesight problems can reduce productivity. It can benefit the company if employees get comprehensive eye exams regularly. This will offset some of the cost.

Critical Illness

Critical illness coverage provides additional coverage for medical emergencies like heart attacks, strokes, cancer and more. Because these illnesses are usually greater than the average medical costs, this coverage will help where traditional health insurance may fall short. This is usually payroll deducted and paid by the employees.

Group Accident insurance

Accident insurance helps your employees maintain financial wellness. The expenses that can result from unexpected injuries can often be overwhelming to your employees and their families. When they’re covered by accident insurance, they can breathe a sigh of relief that they’re better prepared financially just in case an accident happens. Accident insurance covers:

  • Burns
  • Comas
  • Concussions
  • Dental or eye injuries
  • Dislocations
  • Fractures
  • Internal injuries
  • Knee cartilage
  • Ruptured disc
  • Tendon/ligament/rotator cuff injuries

Here’s an example of what we might do for a small business with 12 employees.  In all cases these benefits always tend to key on what the owner needs, and the benefits provided to the employees are a by-product. In this case the employer did not have a retirement plan and they had a hard time retaining employees for any length of time. The employer was already paying 75% of the health insurance costs of their employees, but that was all. We met with the owner and decided it would be best if he put in a SIMPLE plan. Of the 12 employees only four, including the owner participated, but this allowed the owner to personally contribute $13,5000 a year plus an additional $3,000 because they are over the age of 50 and also a 3% annual match of his W-2 wages. This is a lot larger deferral towards retirement than the normal $7,000 they would be able to do in an IRA. 

Also, in addition to the retirement plan we added employer paid group benefits of group term life, long term disability, and short term disability. The rationale behind adding these benefits was that as the owner it was cheaper to add the group than it was to get individual long term disability by itself. We were able to add benefits to retain employees while also getting the owner what they needed. We were also able to avoid any underwriting for any of the insurance because this was done on a group basis. So, if the owner were not in good health we could still get them coverage, that also goes for any employees. 

In conclusion, If you are a small business owner and you are interested in retaining employees, providing a good benefit package, and want to know other ways to fund your retirement. Milestone Wealth Advisors has plenty of solutions for you and your business no matter the size of your company from self-employed sole proprietors to hundreds of employees. Give us a call to see how we can help.

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