Colossal overhead can be enough to kill even the most promising of small businesses – and staff-related costs tend to be one of the biggest culprits.
When starting up a new business, quite a few entrepreneurs will inevitably fail to budget in mandatory employee benefits like medical insurance. Worse yet, a lot of business owners are actually over-spending on these sorts of benefits.
Firms like Core Employee Solutions are working to eradicate needless expenditures.
According to co-founder Christian Brim, clerical errors account for over four percent of the total costs that businesses spend on employee benefits. That means a small business with a health insurance bill of $5,000 per month could be losing around $2,400 every year in overcharges or missed employee deductions.
But health insurance isn’t the only place where companies are running into trouble with their accounts.
Typical errors include termed employees not being dropped from insurance coverage in a timely manner, rate changes not being adjusted in an employee’s payroll deduction or employees being given payroll deductions for benefits they aren’t even enrolled in. Business owners also often fail to communicate changes in eligibility status to their workers.
That’s why Brim and his Oklahoma-based team have launched a brand-new app designed specifically with small businesses in mind.
The Core Reconciler App Spots Errors, Saves Money
The Core Reconciler app is geared at businesses with up to 50 employees that provide any type of benefits to those employees. Planned integration includes payroll, time and attendance, 401k and various types of insurance.
Coming in at a cost of just $1 per active employee per month, the Core Reconciler app ensures employees are notified of their eligibility status changes, confirms that only eligible, active employees are being covered and confirms all payroll deductions match the benefit invoices. Business owners are then sent alerts whenever the app spots a potential error.
“This app will save the employer money on employee benefits and maintain goodwill with employees,” Brim says.
“By making sure that the employee is getting all of the benefit coverage that they are entitled to, and not paying for something they didn’t receive, it not only builds trust with the employer, but saves them the potential legal problems of discrimination claims.”
This Core Reconciler app is only the latest development to come out of Core Employee Solutions.
Last year, the company launched its flagship Software as a Service (SaaS) platform, which allows business owners to review and manage all of their employee-related services under the same roof.
According to Brim, contemporary small business owners benefit hugely from consolidation – which is why the entire employer services industry is headed for this simple, one-stop-shop model.
“Virtually all of the other providers, large and small, are trying to do a one stop shop and provide all possible solutions to the small business owner,” he said. “We believe that the market is much better attuned to meeting those needs, while we will provide a place to integrate those individual solutions as well as provide additional value through custom features we develop.”
Image: Core Employee Solutions