|
|
Volume 15
May 2009
|
|
Greetings!
Over the past several months, the Clean Team Pro has focused on the legal and operational requirements of running your cleaning business: from incorporating vs. remaining a sole proprietorship to licensing and bonding. Another key issue small businesses need to tackle is employee benefits. For some of you, this may be a topic you addressed in your early days, but for most of you, providing cost-based benefits will be something you can only afford to do as your company really takes off financially. This month's Pro newsletter focuses on the challenge of providing health insurance to your employees. Next month, we will address some other ways to benefit and reward your employees, including ideas that may be more financially attainable, even at the early stages of your company. If you offer employee benefits or if you would like to ask a question about benefit packages, we'd love to hear from you. Please send me an email at jeff@thecleanteam.com and we will feature your comments in next month's newsletter. | |
Health Insurance Benefits for
Small Businesses
 Nearly 46 million Americans do not have health insurance. Of these uninsured Americans, almost half -- 20 million -- are the employee, or the family member of an employee, of a small business.
If your company has fewer than 50 employees, only 42.6 percent of you will elect to provide health insurance to your employees. Conversely, 95.6 percent of companies with more than 50 employees offer health insurance benefits.
So, what gives? Why do small businesses offer this major benefit at such an astoundingly low rate? Certainly it's not because small business owners care less about their employees than the owners of larger companies. The real reason that most small businesses do not to provide health insurance benefits is because they simply can't afford it.
The cost of health insurance is skyrocketing
Over the past decade, the cost of employer-provided health insurance plans have risen 120 percent. For small businesses, premiums cost 18 percent more than they do for larger companies.
Additionally, a growing number of larger employers elect to self-insure, avoiding costly state regulations and mandated benefit laws. Most small businesses, however, lack the economies of scale to pursue self-insurance. Instead, they purchase their coverage through small group insurance carriers.
These plans are highly regulated by the states, many of which mandate that they cover certain conditions and treatments. Self-insured plans, on the other hand, are regulated by the federal government, which has far fewer mandates. Here are just two examples of the costly state mandates for small group plans:
- 47 states mandate coverage for mental health, one of the most expensive forms of insurance
- 46 states mandate coverage for chiropractors
The HSA: Another Health Insurance Alternative
If you run the numbers and determine that you can't afford to provide a traditional health insurance plan, you might want to consider a Health Savings Account (HSA), coupled with a high deductible plan. The HSA is a relatively new option, instituted by Congress in 2004.
An HSA is a tax-preferred savings account, owned by the individual employee, and used exclusively to cover current and future medical expenses. The HSA must be utilized in tandem with a health insurance policy that features a high deductible.
Typically the employee of a small business will research and select his or her own policy and then contribute tax-free dollars to the HSA in order to cover that plan's deductible. At the same time, employers could also contribute to the plan -- up to $5,950 per year for an individual with family coverage or $3,000 for an individual with self-only coverage. Some employers also pay for all or part of their employees' premiums for the high deductible plan within their benefit package.
An HSA plan provides numerous advantages to employees (many of which are outlined in this article from the Small Business Administration). Offering benefits via an HSA plan can also significantly advantage your small business. For example, with an HSA plan, you
- Share the cost of healthcare benefits with employees, allowing you to benefit them without having to take full financial responsibility
- Avoid minimum contributions -- you pick the amount and the frequency with which you contribute to your employees HSA in accordance with your bottom line
- Enable your employees to take personal responsibility for their own health insurance needs
- Avoid administrative costs, since employees self-administer their HSA
- Have the option to deduct HSA contributions whether or not you are incorporated
For more information on how HSA plans can benefit your small business, see the Small Business Administration's FAQ on HSAs.
|
|
Using Clean Team Products: Stainless Steel Cleaner
 Keeping stainless steel looking like it did in the showroom is no simple task. It may be "stainless", but it most definitely isn't "spotless".
First, let's separate stainless sinks from stainless appliances. Sinks should be cleaned with whatever you use to clean porcelain sinks: Red Juice, Comet, Pro Scrub, etc. and a white pad or sponge. Stainless Steel Cleaner is a polish and you don't need or want polish in the sink where you wash food and dishes.
Appliances are a different story. You do want to keep them clean and polished, and the best way to do this is with Stainless Steel Cleaner.
The two secrets to using Stainless Steel Cleaner effectively are:
- If the surfaces are dirty (for example stove tops or greasy stove hoods), clean them first with Red Juice or another heavy-duty liquid cleaner, and then wipe them dry. Use a toothbrush or plastic scrubber (no White Pad) difficult-to-remove spots.
- Once the appliance is clean, spray the surface with Stainless Steel Cleaner. Then wipe with a dry polishing cloth (or cleaning cloth or paper towel) until the polish is completely dryin order to avoid streaks. (This is the same technique used to clean a mirror. After spraying the mirror with Blue Juice, you must wipe with a dry cloth until the surface is completely dry, otherwise that little bit of dampness will create streaks.)
Happy cleaning! |
Reader Mailbag
Do you have a comment to share with me or our  readers? Please send me an email at jeff@thecleanteam.com. I'd love to hear from you!
The Necessity of Licensing & Bonding
When I first started my housecleaning business,
I wanted to do everything the "right" way. The license, insurance and
bonding a year cost me approximately $700. My business never took off because
of the recession and I shut it down exactly one year after I started it in
February of 2008. Well, when I had my
taxes done this February, my tax lady said I was nuts to get a license,
insurance and bonding because no one here does that. I lost a lot of
money in my business and wonder if it's all that necessary to spend all that
money right off the bat because you never know if you can afford what is
legally required. I know the ramifications involved IF
something should happen but it seems that everyone here is taking that
chance. I have only one weekly customer left.
~Mar's Housekeeping Service.
From Jeff: You make a good
point. It is an option to start without those protections and I'm sure
that many do so. One other benefit of having the insurance is that you can
tell potential new customers that you are licensed, insured and bonded--which is
often more important when you are new and don't have a track record for
potential customers to check up on.
|
|
|
|
Thanks for reading us this month! Come visit us on the web at www.thecleanteampro.com.
Sincerely,
|
Jeff Campbell
The Clean Team Catalog |
|
|
