Small Businesses — Review Those Benefit Programs

When was the last time your small business reviewed the benefit programs your business offers?

Whether it’s health insurance, a cafeteria plan, a retirement plan or a health reimbursement arrangement, it’s a good idea to review those programs now and then.

As you review these programs, take into consideration these 3 things:

  1. Cost. This one is obvious and fairly self-explanatory. How much money are you spending on your benefit program? Is it worth it? What alternatives are available?

  2. Mechanics. By this I mean, look at how complicated it is for you to maintain. Is it eating up large chunks of your time? What sort of government paperwork to you have to file? What sort of compliance issues do you face? Are there simpler alternatives?

  3. Employee notices. If you have employees, you are probably required to give them various notices regarding the benefit programs you offer. Yes, most of these notices end up in the garbage and never get read. But you still have to hand them out. And the government typically requires that the notices contain certain specific language. When you review your benefit programs, also review your notices to make sure they’re saying what they need to say.

And of course, you should involve your accountant in these discussions.