Staffing employee benefits can vary depending on the job, the person’s situation, and the career. Ultimately, there can be complications with health benefits for any company. But staffing firms have unique challenges in providing coverage for their working associates. Likewise, firms must also comply with the Affordable Care Act or ACA. There are some benefits your staffing clients must offer, as well as optional benefits that may attract quality talent.
Staffing Employee Benefits and Various Plans
Your clients should clearly communicate about staffing employee benefits and discuss health plans, which are often at the top of every worker’s list of concerns.
Mandatory Staffing Employee Benefits
Employers in every industry are required to give their employees certain benefits. These include:
- Social Security, Medicare, and FICA – Medicare and Social Security are standard benefits for all workers. These programs support persons who have retired or have a disability. The Federal Insurance Contributions Act, or FICA, helps fund these programs. The FICA withholds a certain percentage of employee wages.
- Workers’ Compensation – If an employee becomes ill or is injured in the workplace and cannot work, Workers’ Compensation coverage pays for medical costs and offers a small income. Regulations for this program vary from state to state.
- Unemployment insurance – Taxes at state and federal levels ensure employers contribute to this limited-time insurance program that supports employees who have separated from a company.
- Family and Medical Leave Act – Staffing employee benefits include the Family and Medical Leave Act, or FMLA, which allows eligible employees to take job-assured, unpaid leave for medical or family purposes.
- Health insurance – The ACA provisions require applicable large employers, or ALEs, which are companies with 50 or more full-time employees in the previous calendar year, to provide health benefits for staffing employees.
How your clients communicate their staffing employee benefits is as important as what those plans contain.
Communicating Staffing Employee Health Plans
When explaining health plan offerings, your clients should be careful, thoughtful, and thorough. They should keep messages clear and concise. Tips for doing this include:
- Provide an easy-to-understand comparison of coverage options in your benefits plan
- Be clear about points that are covered, that have changed from previous years, and how different coverages have specific benefits
- Give benefits campaigns specific names and even a brand to make them more visible and memorable to employees
- Leave out useless information that could confuse people
Advise your clients on optimal oversight of benefits packages. However, even with care, sometimes employees need to understand, or unintentional mistakes occur with staffing employee benefits. Your clients should consider protecting their financial futures with staffing employee benefits liability insurance. This specialized coverage for the staffing industry protects your clients from omissions, acts, and errors when administering health benefits to employees.
Navigating Complexities
Staffing agencies must consider not only coverage for hired talent but also for in-house employees. With the complicated laws regarding staffing employee benefits, especially health care coverage, your clients need reliable advice and comprehensive coverage packages. Make sure you are current with requirements and available insurance options so you can guide staffing firms to their best choices.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.