Small Business Start-up - Cost of benefits plan??

[Guest rkteague]

We're considering start-up of a small engineering consultancy and specialty construction firm. Working on proforma financials, and would like to get an idea on costs per employee for an outsourced benefits package (medical, dental, life, 401k).

We're looking at 15 full time employees at the end of yr 1, and 50 by the end of yr 3.

What's a ballpark budgetary figure per employee on an annual basis?

What's a ballpark for worker's comp insurance?

Any help would be greatly appreciated.

[KIP KRAUS]

Your best bet is to contact an independent insurance broker who deals in employee benefits and property & casualty insurance and ask them. Most of them would be happy to meet with you for free, because if they place any of your insurance they will get commissions from the insurers.

You will find that your employee benefits options with 15 employees will be more limited than when you have 50 employees.

Talk to a broker.

[Guest Matt Tuttle]

401k could be set up as employee contribution only. All you would have there are administrative fees, medical and dental could get expensive, life could be pretty cheap. I would be happy to run numbers for you if you can give me more information.

Matt Tuttle

203-609-9077

tuttlem@earthlink.net

http://www.wealthadvisors.bigstep.com

[Greg Judd]

Teague,

before going to talk with someone frankly interested in selling you something (maybe anything), check with local business groups/trade associations in your area. Talk with people you know--maybe existing clients--who are running similar size businesses, in similar fields (knowledge/skill-intensive workforces). Ask 'em what they're doing re: benefits/pay, in general terms--benefits as % of pay, for instance. Tell em you're just doing a reality check. You may be surprised how much you'll learn.

Then go talk to the brokers, 401k experts, etc. Ask them how they're compensated (commissions, fees, finders [for 'no-cost' administrators], etc)

I'm a group broker, & brokers can help at the right time. But going in cold isn't the right time, for you.

[Guest cfield]

Don't forget to add Pre-Paid Legal Insurance to your line up of employee benefits. Some insurance/benefits companies or brokers offer it with Health, Dental etc. but it is currently sold through mainly independent assoc. The good thing is it is a product everyone can use and your contribution can be $0 - 15.95 maximum per employee.

If you would like more info. please feel free to contact me.

Carmen

http://www.legalcalm.bigstep.com

[david rigby]

Tagging onto Greg's comment, you might investigate whether any trade groups offer/sponsor some or all of the benefits you are interested in. If they do, then that is just one of your options. Don't assume that will be the best or the cheapest.