Benefits Definition

Do you plan to have employees work for your new business? If so, it’s important to think about what benefits you will offer your workforce before you hire anyone. There are many benefits you can give to your employees in excess of their paychecks. You’re required by law to offer some benefits, but others are up to your discretion and financial abilities. 

What are the benefits that a typical business offers?

The benefits definition in the business world covers many different programs that employers offer employees for their health and well being. There are some benefits you must offer and others that you can offer voluntarily. We can look at benefits examples below.

Benefits Required by Law

Depending on the size of your workforce, you have to provide the following benefits to your employees to remain legally compliant:

• Health insurance
• Family and medical leave

Businesses with at least 50 full-time employees have to offer their employees affordable health insurance. If they don’t, they run the risk of increased tax liabilities. 

Under the Family and Medical Leave Act (FMLA), employers with at least 50 employees have to allow their workers to take 12 weeks of unpaid leave per year to tend to certain medical and family needs. Employers must reinstate the jobs and benefits of employees after they return from FMLA leave. 

Although it’s not required in every state, most states require employers to provide workers’ compensation benefits to their employees. Workers’ compensation benefits help ensure that employees get proper treatment, wage replacement, and disability compensation if they suffer injury on the job. 

Optional Benefits

A business’s benefits definition can include benefits they must provide and benefits they volunteer to provide. There are many benefits a new or established venture can choose to offer, including:

• Disability insurance
• Life insurance
• Retirement plans
• Paid vacation
• Flexible spending accounts 
• Stock options
• Student loan repayment
• Legal services
• Company transportation

While you don’t have to offer any of these benefits, if you elect to do so, you need to follow all applicable laws and regulations to stay legally compliant. 

Benefits: The Advantages

Offering multiple good benefits can help you attract the best employees and keep morale and productivity high. Good benefits can also help you retain employees. Retaining employees is an important goal among many businesses because U.S. businesses spend approximately $1 trillion on employee turnover annually. 

Benefits: The Disadvantages

While benefits can help you stay legally compliant and maintain a happy workforce, they can also make running your business harder. Offering benefits is costly, and many benefits require you to comply with multiple regulations and laws. It’s important to consult with legal and financial professionals to determine if you have the time and financial abilities to provide optional benefits. 

Summary

Under some circumstances, providing benefits to your employees is your obligation. Under other circumstances, voluntarily giving your employees extra benefits is a great way to maintain your workforce and save money in the long run. 

We can help!

Before you start thinking about the benefits you want to offer, let’s get your business off the ground. With our Business Formation Service, we can help you start a new business quickly and easily. Once your business is up and running, our many business support services can help you run your business smoothly. In fact, with our Worry-Free Compliance Service, we can help you keep your business legally compliant and handle up to two business amendments per year for you. We aim to help make your time as an entrepreneur as stress-free as possible.