COUNSELING THE SMALL BUSINESS CLIENT IN CALIFORNIA

I. Overview

Small businesses’ considerations in Employee Benefits are varied, including factors not prevalent in large businesses. Factors include:

1. Tax benefits in general (for all employees)

2. Tax shelter and benefits for owners (to the exclusion, in many instances, of non-owners)

3. Hiring and retention factors (benefits may attract and retain better employees)

4. Insurance factors (health and death benefit protection)

5. Creditor Protection Issues

Factor number 2 is less prevalent in “Big” businesses.