Benefits for Paid Staff of a Condominium Assoc.

Started by JudiK1 • 6 replies • 1560 views

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JudiK1 (Florida)
Posts: 9

Posted:

In preparing the budget for out condo complex, we discovered that the health benefits are being paid 100% by the home owners AND the home owners are contributing $2000.00 for each staff person per year to their HSA, health savings account. For the up coming budget year we have proposed that each staff member contribute their own money to their HSA and pay 30% of the health insurance policy premium. Does this seem equitable based on your experiences?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Hi Judi,

It sounds like your Association is actually hiring employees instead of independent contractors. As an employee various benefits are expected and some are required (by law). Depending on the contract, the benefits might be able to be changed.

Your Association might also want to look into the cost of hiring a management company to do the same things. This way the Association only pays a single negotiated price and none of the employee benefits as the people used are employed by the MC vs. the Association.

Unfortunately, we only use independent contractors for specific functions. Therefore I can not offer you any other advise on benefits.

Tim

DavidW5 (North Carolina)
Posts: 565

Posted:

At the beginning of this year our HOA hired as direct employees, the individuals who had formerly worked for our management company performing the same functions. Their employment contracts specify that the association provides a fixed amount, in addition to their salary, to partially compensate them for their expenses for private health insurance.

This does not represent any fixed percentage since each employee is free to select whatever private health insurance they choose. We have done it this way as our employee group is not large enough to justify us providing a group policy.

FredS7 (Arizona)
Posts: 927

Posted:

You need to look at the big picture. The association should pay salary + benefits to get and keep the people you want. It might be (and I'm not saying it is) that you are paying lower than standard salaries and better benefits.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Judi:

I would recommend you compare the cost difference between the current situation and potentially hiring a management company. If the cost is about the same and employees are performing their job well, then you potentially would want to continue with what you currently have in place. However, if the cost is definitely less expensive to hire a management company then consider the option of changing.

JudiK1 (Florida)
Posts: 9

Posted:

Good point and I should have said that we have a condo salary survey that shows the mgr is is the mid-range and the bldg superintendent is on the high end. This is salary only. But THANK YOU.

JudiK1 (Florida)
Posts: 9

Posted:

That is an excellent idea. TY.

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