Cost of Employee Benefits in Small and
Joel Popkin and Company
Washington, DC 20036
under contract number SBAHQ03M0562
Release Date: August 2005
This report was developed under a contract with the Small Business Administration, Office of
Advocacy, and contains information and analysis that was reviewed and edited by officials of the
Office of Advocacy. However, the final conclusions of the report do not necessarily reflect the
views of the Office of Advocacy.
Small Business Research Summary
Advocacy: the voice of small business in government
Office of Advocacy
Cost of Employee Benefits in Small and Large Businesses
by Joel Popkin and Company
Washington, D.C. 20036. 62 pages.
Under contract no. SBAHQ-03-M-0562
This Small Business Research Summary (ISSN 1076-8904) summarizes one of a series of research papers prepared under contracts
issued by the U.S. Small Business Administration’s Office of Advocacy. The opinions and recommendations of the authors of this study do
not necessarily reflect official policies of the SBA or other agencies of the U.S. government. For more information, write to the Office of
Advocacy at 409 Third Street S.W., Washington, DC 20416, or visit the office’s Internet site at www.sba.gov/advo.
This study examines the cost of the benefits that
employers provide to their workers and how these
costs vary with company size. It focuses on benefits
that employers voluntarily provide: health insurance,
private pension plans, paid vacation, and sick leave.
Employees of small businesses have access to fewer
benefits than do the employees of large businesses.
Small and large businesses continue to provide bene-
fits to their employees, but at a declining rate.
Companies of all sizes have reduced the availability
of health insurance to their employees due to the
increasing cost associated with benefits in recent
years. Access to retirement benefits is more prevalent
among large f