You do not need to be big to offer good benefits. They come in a handful of building blocks.
Health coverage
- A small group health plan. You pick the plan and pay part of the premium. Through SHOP, the federal small business program, you can apply, pick a plan and enroll employees any time of year.
- A QSEHRA. Certain small employers, generally those with fewer than 50 employees that do not offer a group health plan, can contribute to their employees’ health care costs through one.
- A CHOICE Arrangement, formerly called an ICHRA. Employers of any size can generally offer one. Employees use it with their own individual health plan.
The two HRAs are explained in what an HRA is.
Other coverage
- Dental and vision plans.
- Life insurance.
- Short-term and long-term disability coverage.
Retirement savings
You can sponsor a retirement plan of your own. Some states also run a program for employers without one, and California now requires access to one or the other. See California and Washington.
Time off
Paid vacation and paid sick leave. Some states require paid sick leave, including Washington, California and Arizona.
How to choose
- Ask your team what matters most to them before you shop.
- Decide on a monthly amount you could put in for each person.
- Start with one or two pieces you can keep up, then add more.
Questions to bring to your advisor
- Which of these fit a team our size?
- Would a group plan or an HRA work better for us?
- What do our state’s rules ask of us?
