EMPLOYEE BENEFITS

Employee benefits are an indirect form of employee compensation, in addition to wages. Some employee benefits are mandated by law. These include social security, unemployment, and workers compensation. Other employee benefits are sponsored voluntarily by employers. It is usual to talk about health-care, life insurance, retirement, or other welfare benefits in this context. Like most businesses, you want to provide security for your employees. This means making sure your work force has the benefit coverage it needs. As an employer, you need a comprehensive benefit package to attract and keep the kind of employees that make your company successful. For more information or to request a quote please call 856.482.8300 or complete the application below and someone will contact you.

GROUP HEALTH

Group Health insurance is similar in form to individual health insurance. The primary differences are the conditions under which a person may apply and the requirements for acceptance. Before applying through a group a person must satisfy the waiting periods and employment requirements of the group. However, once an application can be made the conditions for acceptance are usually less strict than with an individual policy. Also, certain protections under the law are available for members of group policies that are not available to owners of individual plans. Contact Joe Mahaffy for quotes.

GROUP LIFE

Group life insurance is very similar to individual life insurance. The primary difference is there is usually less choice in the types of life insurance available in group policies. However, group life insurance is easier for people with health problems to get, much the same as group health insurance.

Contrary to popular belief, group life insurance is rarely less expensive than individual life insurance for a healthy person. This is because there is not much in the way of administrative cost to individual life insurance. Life insurance is in general a "lean" insurance product. Therefore, if you are healthy and want to get the best deal on life insurance you are best served to apply for an individual life policy and take the medical exam.

You can use simple rules of thumb, but a real evaluation of your needs should take your whole financial picture into account. Most advisors recommend an amount between 5 to 10 times your salary. Contact Joe Mahaffy if you'd like to find out more about developing a Financial Plan.

GROUP DISABILITY

Group disability insurance is similar in form to individual disability insurance. It covers a percentage of an insureds income upon a disabling accident or event. The two main differences are the conditions upon which a person may apply, and the requirements for acceptance. Before applying through a group a person must satisfy the waiting periods and employment requirements of the group. However, once an application can be made the conditions for acceptance are usually less strict than with an individual policy. Contact Joe Mahaffy for information or a quote.

RETIREMENT PLANS

Retirement plans for small business can resemble an alphabet soup. Simple IRAs, SEP-IRAs, SAR-SEP IRAs, and 401(k)s are all possible configurations for your employee benefits package. At the end of 1999, deposits in retirement vehicles totaled $12.7 trillion in the U.S., according to the Investment Company Institute (ICI). Employer-sponsored pension plans made up $10.2 trillion of that figure, while individual retirement accounts totaled $2.5 trillion.

For small businesses with 100 or less employees, the most popular forms of retirement plans are SEP and SAR-SEP IRAs, which totaled $70 billion in 1999. Simple IRAs are catching on though since they were introduced in 1997. Their use tripled among companies with 100 employees or less from $2 billion in 1998 to $6 billion in 1999. In 1999, 87% of all Simple IRAs were set up by small businesses with fewer than 100 employees. Contact John J. Gallagher, III for quotes

SIMPLIFIED EMPLOYEE PENSION (SEP)

A simplified employee pension (SEP) is a written plan that allows you to make contributions toward your own (if you are self-employed) and your employees' retirement without getting involved in the more complex qualified plan. Employee contributions are not allowed in this type of plan. Also, some advantages available to qualified plans, such as the special tax treatment that may apply to qualified plan lump-sum distributions, do not apply to SEPs.

Under a SEP, you make the contributions to a traditional individual retirement arrangement (called a SEP-IRA) set up by or for each eligible employee. SEP-IRAs are owned and controlled by the employee, and you make contributions to the financial institution where the SEP-IRA is maintained. A SAR-SEP IRA is a SEP IRA with a salary reduction plan included. These are no longer permitted for newly established plans. Simple IRAs is the alternative to consider for an employer-sponsored IRA with an option for employee contributions. Contact John J. Gallagher, III for quotes.

SAVINGS INCENTIVE MATCH PLAN FOR EMPLOYEES (SIMPLE)

Savings Incentive Match Plan for Employees (SIMPLE plan) is a written arrangement that provides you and your employees with a simplified way to make contributions for future retirement income. Under a SIMPLE plan, employees can choose to make salary reduction contributions to the plan rather than receiving these amounts as part of their regular pay. In addition, you will contribute matching or non-elective contributions. Contact John J. Gallagher, III for quotes.

401 K

401(k) plans are among the most popular of employee benefits. 401(k) plans allow employees to save more and do so on a tax favorable basis. Often the employer matches contributions, helping the employee to save; matching also tends to increase employee retention and morale.

401(k) plans are not private savings accounts. They do have limitations on how much can be invested and where the money can be invested. Also, the money can only be withdrawn without penalties under certain circumstances. Contact John J. Gallagher, III for quotes.