Many employers offer their employees insurance benefits as part of their employment compensation. Insurance benefits may include healthcare benefits in addition to disability benefits, unemployment benefits, workers' compensation benefits, and more. Information about these benefits and about employees that are receiving these benefits should be neatly organized so that employers can access them efficiently at any time.
Why the Benefits Insurance folder is important
Because many employers offer a wide variety of insurance benefits to their employees, keeping track of which benefits employees are taking advantage of can be challenging. For example, some employees may opt for dental coverage while other employees may prefer to have a more simplified healthcare benefits package. Furthermore, some employees may have the option of declining certain benefits, such as workers' compensation, depending on the employer's state.
Employers may also be required to retain benefits insurance information for those employees that are current or that are no longer employed by the company. Employees have up to two years to file a lawsuit against an employer in most states. Therefore, employers may wish to retain copies of information pertaining to employees' benefits if this information may aid in the employer's defense.
Also, employers should retain all financial information for an employee for at least seven years and be able to supply this information in the event that the employee or employer is audited. Benefits are classified as a form of financial compensation for employees.
In order to help employers stay organized and informed about which employees are receiving (or are eligible to receive) which benefits and what benefits employees are taking advantage of, employers can use the durable tabbed benefits insurance folder, which contains separate tabs for different important items.