NEWSRELEASE
For Release: August 18, 2005 New Report Details Costs Of Employee Benefits Breaks Out Cost Differences Between Large And Small Firms WASHINGTON, D.C. - A new report released today by the Office of Advocacy of
the U.S. Small Business Administration (SBA) details the cost of employee
benefits by firm size. The report specifically looks at the cost of health
insurance, pension plans, paid vacation, and sick leave. The report finds that the offering of benefits and their associated costs can
vary dramatically with firm size. For instance, the latest data show that the
per-participant administrative costs of defined-contribution pension plans (such
as 401(k) plans) are as much as 14 times more for the smallest firms than for
their largest counterparts. The authors also examined the share of all private industry employees
eligible to enroll in health insurance plans. They found that about 40 percent
of employees in the smallest firms were eligible for health insurance coverage
while slightly more than 77 percent of the largest firms’ employees were
eligible for health care coverage. Joel Popkin and Company wrote the study, Cost of Employee Benefits in
Small and Large Businesses, with funding from the Office of Advocacy.
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 05-40 ADVO
Press Kit
For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo.
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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo, or call (202) 205-6533.