Businesses offer competitive packages in order to attract a talented workforce. But what types of benefits are offered to part-time employees? By the end of October 2018, 27.33 million people worked as part-time employees in the United States.
Due to few federal regulations on this matter, employers enjoy a great deal of power deciding the type of benefits to offer part-timers.
Sometimes the benefits are generous; other times, they’re minimal and nearly non-existent. Employees should ensure they comply with applicable local and state regulations.
In this blog, we take a look at 3 things you should know about offering part-time employee benefits.
What is “Part-Time” Any way?
It’s vital for business owners to create a policy that clearly specifies the number of work hours required by an employee to be classified as a part-time worker. 20 hours per week is generally considered to be the minimum; however, the U.S Bureau of Labor Statistics’ states in their Economic News Release that part-time workers must work at least 34 hours per week.
Generally speaking, after offering the basic statutory benefits, small business owners can develop their own policy except in states where the law states otherwise.
Whether you offer statutory benefits (Social security, workers compensation insurance or short-term disability), a reduced benefits package or a fringe benefit package, consider the following benefits
The state decides whether part-time employees have to be given unemployment benefits by the business. It also takes into account factors such as the number of hours worked during the previous year, wages earned, if the employee quit, was fired or laid off. Business owners might also be required to enroll in its state unemployment insurance program.
The Affordable Care Act does not impose an obligation on business owners to provide health insurance. That means even if health insurance is being given to full-time employees, part-time workers may not be on the receiving end, especially if they work in a small business.
ERISA or Employee Retirement Income Security Act mandates certain small business owners to provide retirement plans to part-time workers. Similar to health insurance, eligibility for the retirement plan depends on the number of hours worked. ERISA and the IRS state that a minimum of 1,000 hours needs to be completed annually to be included in the plan.
Providing health benefits for part-time employees leads to improving productivity and a sense of loyalty. Our employee wellness programs for businesses in New Jersey handles the employee benefit programs on behalf of your company and ensures they’re in line with state laws. Contact us today!