Every benefits package starts with the essentials—health coverage, retirement savings, and compliance with the law. These foundational elements are non-negotiable. They support employee well-being, meet federal and state requirements, and set the tone for how a company values its people. But in today’s competitive talent market, the basics are just the beginning.

Now, employers are thinking bigger. They’re layering in creative perks, flexible offerings, and meaningful extras that show employees they’re seen, supported, and appreciated. From commuter benefits to book clubs, benefits today are as much about culture as they are about coverage.

Of course, creativity without compliance can quickly become a liability. That’s why we’re exploring both the must-haves and the innovative add-ons—plus how to manage them without overloading your team. Let’s dive into the building blocks of a smart, modern benefits strategy.

The Must-Haves: Health Insurance & ACA Compliance

Health benefits remain a cornerstone of any benefits package. Most companies offer medical, dental, and vision coverage. But under the Affordable Care Act (ACA), simply offering coverage isn’t enough—you must document that coverage was offered and, ideally, collect a signed waiver if the employee declines. This step protects the company if an employee seeks coverage through a federal or state exchange, potentially flagging your business for non-compliance. As always, if it’s not in writing, it didn’t happen.

What Happens After Termination: COBRA

When an employee leaves—voluntarily or otherwise—COBRA kicks in. For larger employers, this means giving the employee the option to continue their group benefits for up to three years in some cases. The timeline for notification is tight, and failure to act quickly can lead to compliance issues. Most businesses pass on the full premium plus a small administrative fee, but the administrative responsibility is still significant.

Retirement Plans: A Powerful Perk with Heavy Compliance

401(k) plans are a popular benefit—and for good reason. They help employees build financial security, and they give businesses a competitive edge. But offering one is no small feat. Under ERISA regulations, mismanaging a retirement plan can hold business owners personally liable.

The process involves more than just payroll deductions. Employers must hold annual meetings, distribute plan documents, file federal returns like the 5500, and pass nondiscrimination tests to ensure the plan benefits employees fairly. Most companies rely on a third-party administrator to keep everything compliant and to avoid costly missteps.

Flexible Spending Accounts (FSAs) and Their Limits

Flexible Spending Accounts offer employees a tax-advantaged way to set aside funds for medical, dependent care, or commuter expenses. But they’re not without their pitfalls. Elections must be made once per year and are generally irrevocable. Any unused funds are forfeited, which can be a surprise to those who haven’t planned carefully. These plans must be administered by a qualified third party and require careful communication to employees to ensure they understand the risks and benefits.

HSAs and Voluntary Insurance Options

For companies with high-deductible health plans, Health Savings Accounts (HSAs) are a powerful addition. They allow employees to build a healthcare nest egg, and the tax benefits appeal to both the employee and employer.

Other voluntary benefits, like life, accident, or critical illness insurance, are often administered by providers like Aflac. These offerings can round out a benefits package nicely without significantly increasing the employer’s workload. They also give employees peace of mind and financial security beyond what’s covered by standard health plans.

Thinking Beyond the Usual: Creative Perks That Matter

While health and retirement plans are foundational, modern benefits go beyond the basics. Employers are now partnering with credit unions to offer better lending rates, providing access to pet insurance for employees with four-legged dependents, and even sponsoring book clubs or wellness programs that help build community and company culture.

These “softer” perks may not show up on a spreadsheet the way a 401(k) does, but they play an important role in retention and employee satisfaction. Often, it’s these small touches—like buying books for a book club or offering commuter subsidies—that make the biggest difference in how employees feel about where they work.

Where a Strategic Workforce Partner Comes In

Managing a robust and compliant benefits program takes more than good intentions—it requires precision, expertise, and a lot of paperwork. That’s where an Employer of Record (EOR) can be a game-changer.

From handling ACA documentation and COBRA notifications to administering FSAs and managing third-party vendors, a Strategic Partner can lift the administrative burden off your plate. They help ensure your benefits program not only runs smoothly, but also evolves with new legal requirements and employee expectations.

Your benefits package isn’t just a checkbox. It’s a direct reflection of how you value your team. If you’re ready to offer more without juggling all the details yourself, we can help.

ClearPath is a leading Strategic Workforce Partner focusing on assisting employers to leverage the independent contractor and flexible labor market. We’re committed to helping business owners stay compliant and minimize the risks associated with their contingent labor requirements. 

No Legal Advice Intended. This article includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues.