In this month’s newsletter, I wanted to talk about two commonly overlooked things (or completely unknown) in the benefits space, especially for companies that don’t have HR departments. First is something we see with just about every new company we talk to, even those with benefit programs already in place. In this article, we talk about ERISA Setup Documents and Section 125 Docs. We get into specific details in the blog, but you can think of the ERISA setup docs as YOUR company’s benefit plan formations docs. Section 125 documents create the benefit plan that allows your company to handle deductions on a pre-tax basis. I would say probably 95% of the companies we first meet don’t know these requirements exist.
The second article is regarding disability insurance and what a value it can be for a company. It’s not a shiny, flashy benefit that employees will use every day, but we all know people who have had to miss work due to serious sickness or injury, and in most cases, disability plans are not in place, which tends to lead to hardships for those folks. Disability plans keep money on the table in these situations. When the illness or injury is long-term, it can keep income coming in until someone gets on Social Security. There are not many other benefit plans that can provide that kind of long-term financial protection. Additionally, a company’s disability costs tend to be less than 10% of their spend on health insurance, so for those looking to have some good vehicles in place for long term employee financial protection, disability plans can do so at a very affordable price point.
We hope everyone is having a great summer as things continue to get back to normal. We are seeing more and more clients in person, which is great. We can’t wait to see you again sometime soon and face to face. Talk soon!