As a business owner, you are most likely aware that employee benefits play a substantial role in acquiring and retaining your valuable employees, due to the important role that benefits play in the lives of employees, as well as their families. Therefore, as an employer, you should make a point to understand the requirements of Michigan Employee Benefits plans.
There are two different types of employee benefits. One is an option for the employer to use to compensate employees such as medical benefits and retirement plans. The other is a set of benefits required by law for your employees including workers compensation and Social Security. Both benefit types come with legal and tax implications for an employer.
Understanding what is needed to provide required benefits can save a lot of hardship down the line.
Social Security- Social security taxes are required to be paid by the employer at the same rate as their employees.
Unemployment- Businesses that have employees may be required to register with the state’s workforce agency and pay unemployment insurance taxes.
Workers Compensation- Required by businesses with employees, workers compensation can be provided on a self-insured basis, through a commercial carrier, or via a state program in the event of a work related injury or illness.
Disability Insurance- While not required in all states, this provides partial wage replacement in the event of a non-work related injury or illness.
Leave Benefits- Most leave benefits such as vacation, sick leave, and personal leave are not required by the state and are generally offered through the employees overall benefit plans.
Family and Medical Leave- The Family and Medical Leave Act (FMLA) is required for public employers, as well as for private employers with 50 or more employees. This allows for 12 weeks of unpaid leave in the event of childbirth or to care for an immediate family member. In addition, time off due to serious personal health issues are covered under this act without fear of job loss upon return.
While the health and safety of your employees are an important part of being an employer, making sure that you have an understanding of the laws that go into providing that safety and security for them is key to ensuring the security of your business.
At Capital Insurance Group, we know how important your employees are to the success of your business. Call us today for more information on how we can help you find the right Employee Benefits plan. 888.296.0418