Small businesses need to factor in employee benefit options from day one — and this Houston expert has some tips. Photo via Getty Images

While Small Business Appreciation month has come to an end, my work in aiding small businesses achieve financial success is continuous.

In 2009, I began my career as a financial adviser recently co-founded Volante Integrated Planning, a Houston-based office of Northwestern Mutual focused on comprehensive financial planning and helping clients achieve financial freedom.

After years of working with business owners, and as a small business owner myself, I have learned the importance of offering benefits that help attract and retain talent, foster improved work habits and provide a foundation for growth. According to the annual SHRM employee benefit survey, health-related benefits and retirement plans were ranked the two most important benefits for employees. Whether you are a new small business owner or an established one, it is important to be aware of the benefit options available to you and the considerations that go into mapping out a benefits strategy.

1. Retirement plan options

The most common retirement plans available to small business owners are 401(k), simplified employee pension (SEP) IRA and savings incentive match plan for employees (SIMPLE) IRA. The SEP IRA and SIMPLE IRA provide employers the ability to save on a pre-tax basis. While there are some required contributions on behalf of any full-time employees, the SEP and SIMPLE IRA’s are often recommended for the self-employed or businesses with part-time or contract employees. The 401(k) also provides employers with a pre-tax savings opportunity and the ability to save on a Roth basis. Because a 401(k) requires additional administration and ongoing requirements, it is often a valuable tool for business owners who have more full-time employees.

2. Health care benefit options

According to the Affordable Care Act, companies with fewer than 50 employees are not required to provide health insurance. However, offering a competitive health insurance benefits package is an increasingly important strategy to help boost both new employee acquisition and retention. Following the global pandemic, health benefits have become increasingly important. According to a study by McKinsey & Company, 51 percent of employers now offer health care benefits to attract new employees with dental, vision, and short-term disability as the most important for job-seekers.

Not only are these benefits of importance to employees, they provide protection for business owners by ensuring good health and protection from illness-related lost productivity. Some health care benefits available to small business owners include health reimbursement accounts, where you make contributions to an account that can be used by employees to pay for individual health insurance policies acquired on their own. Consider hiring a broker, benefits consultant or financial adviser to help compare your options.

3. Life and disability insurance options

As a small business owner, you have a duty to your family, employees and business partners. It is often the unexpected that can derail the success of a business. To that extent, taking the steps to ensure you and your business are protected if you are unable to work is important. Disability insurance is a versatile product that can be used to protect you, as the owner, and your employees against loss of income due to the inability to work. Additionally, disability overhead coverage and disability buy-out insurance can protect the business and any business partners from an owner’s disability, ensuring that the business can still run smoothly. Life insurance is also important, and often required if seeking a business-related loan, to provide income replacement for your family and any business partners in the event of an owner’s death.

4. Get creative with your benefit options

The small business world is ever changing, which is why it is essential — and sometimes difficult — to keep up with benefit options. I encourage small business owners to get creative with their benefit options by exploring a professional employer organization (PEO) and a multiple employer welfare arrangement (MEWA). PEO is designed to help small businesses manage their administrative overhead, benefits and compliance duties. Through MEWA, small businesses are able to collaborate on group insurance benefits for a low cost. Lastly, if your family members contribute to your small business, make sure they are on the payroll and eligible for various benefits. This may allow you to increase the benefits your household takes home.

While creating a small business employee benefits plan can be tedious, it will take your small business to the next level. Consult in a CPA, business attorney, and financial adviser to help navigate what benefits are a good fit for you and your small business.

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Jennifer Steil is principal and wealth management adviser at Volante Integrated Planning, a private client group at Northwestern Mutual.

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7+ can't-miss Houston business and innovation events in May

where to be

Editor’s note: Houston is living up to its nicknames as Space City and the Energy Capital of the World this month with a lineup of insightful talks, pitch days and industry conferences. Plus, there are opportunities to network over crawfish, learn about brain health and more. Here’s what not to miss and how to register. Please note: this article may be updated to add more events.

May 7 – Ion Block Party and Crawfish Boil

Head to this special edition Block Party, featuring a crawfish cook-off competition among the Ion’s businesses. Competing teams include Transwestern, Microsoft, Rice Alliance, Rice Nexus, South Main Baptist, Per Scholas, Industrious and many others. Taste test crawfish while supplies last, and sip a complimentary drink from Second Draught.

This event is Thursday, May 7, from 4-7 p.m. at the Ion. Register here.

May 12 – Why the Next Decade of Breakthrough Brain Tech Matters For You, and What to Do About It

Hear from Matias Serebrinsky, co-founder and general partner of San Francisco-based PsyMed Ventures, at this talk presented by EO Houston. Serebrinsky will discuss why founders are disproportionately affected by brain health issues and look at breakthrough brain and mental health tech.

This event is Tuesday, May 12, from 11:20 a.m.-1 p.m. at Tony's on Richmond Avenue. Register here.

May 18-19 — Geothermal Transition Summit North America

This two-day summit serves as the meeting point for the geothermal and oil and gas industries and will focus on geothermal energy, including scaling plants and navigating state regulations. The event promises 40 expert speakers, 15 exhibition spaces, and networking opportunities with 250 industry decision makers.

This event begins May 18 at Norris Conference Center. Register here.

May 19 – IOT Innovation Day

IoT Innovation Day will present a series of fast‑paced, 15‑minute tech talks focused on the future of connected devices. These sessions feature insights from founders, engineers, product innovators and industry leaders. Attendees are also invited to sign up to present their own tech talk showcasing their expertise, startup or solution.

This event is Tuesday, May 19, from 10 a.m.-6 p.m. Register here.

May 20-21 — ESF North America

ESF North America returns for its 5th edition, under the theme of “innovation and adaptation.” Attendees will explore how technology, innovation, and collaboration can drive a resilient, competitive refining and chemicals industry.

This event begins May 20 at The Westin Oaks Houston at the Galleria. Register here.

May 21 – AI + Energy Sector Pitch Day

Hear from startups powering the AI boom or using AI to support the energy transition at Greentown's latest installment of its Sector Pitch Day series. Brian Walker, program manager for emerging technologies in the U.S. Department of Energy’s Building Technologies Office, will present the keynote address. Six Greentown startups will present pitches, as well as others from IMPEL, a DOE tech-to-market program, and more. Stick around for a networking happy hour.

This event is Thursday, May 21, from 1:30-6:30 p.m. at the Ion. Register here.

May 28 – NASA Stories at the Ion: A Conversation with NASA’s Artemis II Orion Vehicle Manager Branelle Rodriguez

NASA’s Artemis II Orion Vehicle Manager Branelle Rodriguez will discuss what it took to ready the spacecraft for its mission and return to Earth at this special installment of NASA Stories. Rodriguez will share insights on Orion’s high-speed reentry, the views of the Moon and Earth witnessed by the crew, and what’s next for Orion on NASA’s upcoming Artemis missions in 2027 and 2028. Complimentary breakfast and networking take place before each talk.

This event Thursday, May 28, from 8:30-10 a.m. at the Ion. Register here.

May 28 – NASA Tech Talks: Texas-France Space Hub Business Accelerator Initiative

NASA Tech Talks is partnering with the Rice Space Institute (RSI) this month to host the second cohort of the Texas-France Space Hub in Houston. The hub aims to unite academic institutions and private enterprises to expand commercial space presence in both countries. Startups from the hub will present during the event, followed by drinks and networking at Second Draught.

This event Thursday, May 28, from 6-7 p.m. at the Ion. Register here.

New TMC partnership aims to grow Houston’s biomanufacturing workforce

workforce partnership

Houston is a frontrunner in the race to introduce and manufacture advanced therapeutics to the medical world. A new agreement between the Texas Medical Center (TMC) and San Jacinto College (SJC) aims to speed more experts and their technologies towards the finish line.

Earlier this month, the world's largest medical center and the nation’s second-ranked community college announced their new partnership that will set students on a path towards careers not only in life sciences in general, but also in pharmaceutical and biomanufacturing specifically.

SJC already has programs in those majors—its first graduates are now joining the workforce—but working with TMC will help the college recruit new students, as well as aid in enrollment and participation. Thanks to this collaboration, SJC students will benefit from more experiential learning and be able to transition more smoothly into the next steps in their training.

“Houston is a premier global hub for life sciences and biotechnology, and the talent we need to advance therapeutic drugs, diagnostics, and cell and gene therapy is already here,” William McKeon, the TMC’s president and CEO, said in a news release. “With more companies choosing to establish their headquarters in Houston and the daily breakthroughs happening across the TMC campus, partnering with San Jacinto College is an important step toward sustaining that momentum and unlocking even greater innovation and growth through the promising talent that already exists within our state.”

The partnership is currently slated to last two years, but the institutions have the option to extend after that.

For students, their journey to becoming scientists will likely start with Biopath @ TMC, a program that introduces high school students to biomanufacturing careers and what it takes to pursue one. Since its inception two years ago, the program has worked with more than 2,000 students around Harris County.

“This partnership exemplifies San Jacinto College’s ability to design and deliver programs that align with current workforce demands while opening doors for untapped talent across the Houston region,” Brenda Hellyer, SJC chancellor, said in the release. “TMC is a key industry leader in our region, and San Jacinto College has a unique global curriculum that provides the foundation and skills required for students to succeed and graduates to thrive in meaningful careers that will contribute to the innovation and advancement of the life sciences.”

Thanks to this new collaboration, more of Houston’s biomanufacturing workforce will soon be locally grown.

Houston legacy planning platform secures $2.5M investment, adds to board

fresh funding

Houston-based Paige, a comprehensive life planning and succession software company, has secured a $2.5 million investment to expand the AI-driven tools on its platform.

The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams.

The company was originally founded by CEO Emily Cisek in 2020 as The Postage and rebranded to Paige last year. It helps users navigate and organize end-of-life planning with features like document storage and organization, password management, and funeral and last wishes planning.

“Too many families are left trying to piece together important information during some of the hardest moments of their lives,” Cisek said in the news release. “This investment allows us to accelerate the next phase of growth for Paige by improving the product and expanding support for our members, our financial institution partners and the communities they serve,”

In addition to the funding news, the company also announced that 22nd State Banking CEO and President Steve Smith will join Paige's board of directors.

“We believe banking should be grounded in relationships and built around the real needs of the people and communities we serve. Paige brings something deeply relevant to that mission," Smith added in the release. "It helps families prepare for the future in a practical and meaningful way, and it gives the banking community new pathways to support customers through important life transitions.”

Paige estimates that $124 trillion in assets will change hands through 2048. Yet about 56 percent of Americans do not have an estate plan.

Read more on the topic from Cisek in a recent op-ed here; or listen to InnovationMap's 2021 interview with her here.