Business PlanningEmployee Benefits: Compete for Talent Without Overspending
Group health insurance, retirement plans, and benefit packages that help small businesses attract and retain great people.
Talk to a ProfessionalBenefits are one of the most powerful recruiting and retention tools available to small and mid-size businesses — but they're also one of the most misunderstood. The right package doesn't have to be expensive. It has to be strategic.
For many employees, the benefits package matters as much as salary. Health insurance, a 401(k) with a match, and life and disability insurance are the baseline expectations in most industries. Offering them well — and communicating them clearly — is a competitive advantage.
The Blueprint covers group health plan structures, how to set up and administer a 401(k), supplemental benefits worth considering, and how to build a benefits package that makes sense for your business size and budget.
What you need to know
Group health insurance
Group health plans spread risk across employees, which typically means lower premiums than individual coverage. As an employer, you decide how much of the premium to cover. The IRS allows the employer portion as a business deduction.
Retirement plans for small businesses
A SEP IRA, SIMPLE IRA, or 401(k) can be set up for businesses of any size. The 401(k) offers the highest contribution limits and is the most flexible, but has higher administration costs than the simpler alternatives.
Group life and disability
Adding group life insurance (typically 1-2x salary) and short-term or long-term disability coverage to your package adds real value for employees at relatively low cost. These are often bundled with health coverage.
SECURE 2.0 Act
Recent legislation created significant tax credits for small businesses that start new retirement plans and for those that auto-enroll employees. The credit can offset most or all of the setup and administrative costs in the first several years.
Latest from The Blueprint
Articles on employee benefits are coming soon. Browse all articles →
Ready to talk to someone about employee benefits?
No pressure. No obligation. We'll connect you with a licensed professional who can help with your specific situation.
Get Started — It's Free