Do I Need to Give Benefits to My Hourly Workers?
From a legal perspective, there's a lot to consider.
By Desmond Lim •
Opinions expressed by Entrepreneur contributors are their own.
In an ideal world and economy, every employer would be able to provide benefits such as health insurance, retirement plan matching, and travel reimbursements to all employees. However, it's often not financially feasible for many small businesses.
According to the Bureau of Labor Statistics, benefits made up about a third of the cost of an employee. Meaning, an employee salaried at $50,000 would actually cost the employer another 30 percent more, for a total of $65,000. For small businesses with thin margins, like local grocery stores, this sort of expenditure per hourly employee can be next to impossible.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, get access to a ton of exclusive content and resources that will help grow your entrepreneurial mindset. You’ll find:
- Exclusive content from our network of today’s leading CEOs and business strategists
- Receive our flagship Entrepreneur Magazine - free!
- No more ads, and get access to the Entrepreneur+ homepage
- Free E-books written by our staff and other industry thought leaders
