Employers Offering Benefits in Washington State

Business owners in Washington State grapple with the challenge of providing employee benefits while ensuring business profitability. This guide explores diverse benefits, offering cost-effective tips, and delving into mandatory and optional benefits to shape a value-centric package. The key message is that growth and employee benefits need not be mutually exclusive; a long-term perspective fosters steady business growth and a motivated team.

Tailoring Benefits According to Company Size:

1-49 Employees

For companies with fewer than 50 employees, exemptions from the Affordable Care Act mean no mandatory provision of health benefits. Despite this, approximately half of businesses in this category opt to offer some health benefits. Offering benefits as a small business can make your recruiting and hiring process more competitive, bringing in more skilled workforce who might otherwise seek other opportunities. To manage costs, small businesses can contribute solely to an employees' premiums, excluding dependents. Additionally, providing coverages such as, Long-Term Disability coverage, which tends to be costly when obtained independently, can serve as an attractive incentive for this high-caliber talent.

50-100 Employees

Upon reaching the 50 full-time employees milestone, businesses fall under the federal Family Medical Leave Act, necessitating up to 12 weeks of unpaid leave for events like the birth or adoption of a child or dealing with a severe illness. Simultaneously, employers are obligated to cover the employer portion of Washington state’s Paid Family and Medical Leave program, and are also required to offer major medical to all eligible employees with a minimum employer contribution. As the company expands, consider adjusting cost-sharing structures and incorporating coverage for dependents, or adding supplemental policies that provide coverage for gaps in the major medical and mitigate out-of-pocket costs for your employees.

100+ Employees

For larger enterprises exceeding 100 employees, financial resources may permit the introduction of advanced supplemental benefits. These can include innovative offerings like EAP programs, life insurance, disability, and fitness reimbursements programs, thus signaling a commitment to employee well-being and satisfaction.

Mandatory Washington State Benefits

Affordable Care Act

For businesses with 50 or more full-time equivalent employees, the Affordable Care Act (ACA) mandates the provision of qualified and affordable health benefits. Being out of compliance subjects employers to potential tax penalties. Having the knowledge and resources to keep your business within the legal standard keeps your business profitable and on track for growth. Entities with fewer than 50 employees are not obligated to offer health insurance.

COBRA

If an employer provides health insurance and has 20 or more employees, it is generally required to offer terminated employees the choice to maintain their health insurance coverage through COBRA. Tidal Group offers COBRA administration that tracks these eligible employees for you. Employees opting for this coverage must pay the premiums themselves after terminating from the company. Typically, COBRA coverage extends for a maximum of 18 months, while dependents can often continue coverage for up to 36 months.

Family and Medical Leave

Employers with 50 or more employees must adhere to the federal Family and Medical Leave Act (FMLA). This regulation grants eligible employees up to 12 weeks of unpaid leave for reasons such as the birth or adoption of a child, or dealing with a serious health condition of the employee or an immediate family member. Employers are obliged to maintain the employee's health insurance during FMLA. Further details about FMLA compliance can be explored for a comprehensive understanding here or ask and agent: https://www.dol.gov/agencies/whd/fmla

Washington State Paid Family Medical Leave (PFLM):

Introduced in 2020, Washington State's Paid Family Medical Leave program (PFLM) provides most employees with up to 12 weeks of paid leave. This includes bonding time with a newborn or adopted child or addressing the employee's serious health condition or that of a qualifying family member. Unlike FMLA, there is currently no mandate for employers to continue health insurance coverage during an employee's PFML. For additional information on PFML, refer to: https://paidleave.wa.gov/ or ask an agent!

Understanding Employee Benefits Costs

Reducing Employee Health Insurance Costs

Limited Provider Networks

Many companies deploy Health Maintenance Organizations (HMO) or Exclusive Provider Organizations (EPO) networks. These networks necessitate employees to utilize specific in-network doctors, thereby aiding in cost control.

Tax Advantaged Accounts

The implementation of Health Savings Accounts (HSA) and Health Reimbursement Accounts (HRA) provides opportunities for both employers and employees to save additional funds. We can walk you through how to utilize not only your health insurance expense but also how your integrated payroll provider may be able to help you with tax credits.

High-Deductible Plans:

Opting for high-deductible health plans can enhance affordability for employers and employees by mitigating upfront costs. Various high-deductible options exist through your current carrier and others, some of which still offer unlimited office visits and other services for a co-pay.

Self-Insurance

Employers can explore partial or fully self-insured plans, enabling them to potentially save on premiums while customizing a plan that aligns with their specific needs and the employee demographics. More insights into self-insurance options in Washington State can be obtained for informed decision-making.

Supplemental Benefit Banks

A Benefit Bank is a set amount of dollars agreed upon by the Employer to be allocated for each Employee per month to go towards any Supplemental Benefits of the Employees choosing. This gives the Employer flexibility to choose a budget that works within their financial needs and the Employees the option to customize their own Supplemental Benefits Package to fit them and their families needs.

Probation Periods

Washington state employers have the flexibility to institute a waiting period, delaying the commencement of benefits from the date of hire up to 60 days.

Wellness Focus

Promoting employee wellness carries potential cost-saving benefits. Many companies, both large and small, implement programs assisting employees in identifying health issues and managing chronic conditions. Many carriers also extend discounts for wellness participation within employer groups, often requiring simple activities like health screenings to track diet and activity over a brief timeframe. Reimbursements for fitness trackers and daily movement goals can be direct saving opportunities for employees as well as employers through those particular refund programs.

Initiating Employee Benefits

The best time to start offering benefits to employees is now! Tidal has options for most businesses to begin cultivating a culture around benefits with groups as small as 5 employees. Owners who adopt a forward-thinking approach regarding benefits can reap the reward of maintaining employees who want to grow alongside your business.

Prospective employees thoroughly evaluate the benefits accompanying a new job. In situations where all else is equal, many express a willingness to accept reduced salary for superior benefits. Adding a rounded benefits package to your recruiting process sets your business above the rest. To secure quality employees over competitors, your benefits package can be what sets you apart.

Creating a Culture around Employee Benefits

Education and Compliance as a Foundation:

Making a decision around what and how to implement a competitive benefits package can be overwhelming. Tidal respects that our clients may not be insurance experts, leave that to the agents who dedicate themselves to building custom packages with creative and industry specific perspective. Our system is unlike anything you’ve experienced. The Tidal Team wants your business to achieve its goals and be there to implement systems that grow with your company's evolving needs.

Strategic Additions:

Strategically enhance benefits by incorporating partner offerings that resonate with your business demographic. Tidal Group partners with local and major payroll services that streamline human resources processes, HRIS systems that simplify onboarding protocols, and education teams that sits with your employees to help them understand how to utilize their benefits, and gives your employees access to their benefits 24/7 via mobile apps, real benefits counselors, and multiple online resources.

Tidal Group offers dedicated support for health insurance plans and human resources needs. Their personalized service prioritizes client needs without ties to insurance quotas, fostering long-lasting relationships.Our goal is to advocate for you against carriers to make sure you're not only receiving the best premium but also the best care and service. Our brokers look for a challenge and want clients to engage in the process so they have a fuller understanding of what their packages do for them and their employees. We stay on top of the ever changing landscape in and outside of Washington and go above and beyond for our clients. Have you asked your broker what they are doing for you outside of providing their insurance lately?