It is critical to take some time to consider if and which benefit options can have a positive engagement and financial impact within your company.
Taxes and employee turn-over are expensive, there are ways to reduce both!
There are some great options when looking to extend benefits to employees. Most are not expensive and some have great tax advantages. Often benefits can persuade an employee to accept your offer or remain in your employ. This will likely become more apparent as millennials make up the majority of the workforce today and last summer we began to the see Gen. Z make its professional appearance. These generations are looking for a position which will fit into and support their overall lifestyle.
Probably the best bang for your buck and the easiest way to realize a tax impact is a Premium Only Plan (POP). If you offer healthcare, disability and/or life policies, be sure you have a POP. This is a plan which must be adopted for an employer to compliantly allow pre-tax premium deduction through payroll. These plans are straightforward, require little effort, are provided at a very low cost to the employer and can provide significant tax savings to both the employer and employee. If you do not have a POP and have insurance premium deductions in payroll; get one!
When it comes to retirement savings options, it is important to consider the demographics of your staff and your company type. A Simple IRA may make the most sense for a smaller employer looking to create an option for retirement, gain some tax savings and introduce employees to the idea of Retirement Savings. A 401k may be the best option for other employers, but there are several retirement plan options available. The key to introducing a retirement option is an engaged, trusted and relatable Financial Advisor. Even at a 1% contribution, employees and the employer can realize tax advantages. Business owners can personally realize an impact to taxes as well with retirement options.
Offering employees, a benefit such as time off to volunteer can allow an employee to fulfill a desire to contribute and support what is important to them. The employer gets to set parameters around such a benefit, which is not mandated; you choose the amount of time and frequency. It is not uncommon to see employers allow for one day of paid volunteer time per year. You can require documentation to confirm attendance. Some employers will coordinate a volunteer day for the entire office.
Virtual work or telecommuting trends are continuing in the same upward trajectory and if a viable option for your employees and business this can be an impactful attraction and retention tool. Even just a day or a half day per month to start can make an impact. Many employees often work harder from a telecommuting location than the office, they want to keep the option available.
Want help paying employee wages? There are some agencies and tax credit programs which provide specialized training to individuals and tax credits. If you hire a qualified individual, some of their wages may be paid for a period of time, up to 100%!
"The way your employees feel is the way your customers will feel. And if your employees don't feel valued, neither will your customers."
Sybil F. Stershic
Employers are getting creative today to help retain and engage employees. When in doubt of what would impact your staff ask them! Elmore HR can prepare a survey if you feel it is needed.
Some benefits employers offer:
Section 125, Flexible Spending Accounts and Dependent Care Accounts. Group life insurance and Disability benefits.
Pre-tax commuter benefits.
Casual work environment; working from couches, recliners and adjustable work stations.
In house bicycle(s); available for employees to use during breaks.
A stock of healthy snacks and drinks.
Paid Gym/Yoga Memberships.
Need some guidance on benefits? Let’s discuss and if necessary, we can connect you with a licensed broker and/or advisor to explore specific options.
Take some time to explore and consider the impact, you will be glad you did.
2795 E. Bidwell #100-148
Folsom, CA 95630
916-337-9121 | www.elmorehr.com
The information in this message is for informational purposes only and should not be considered legal advice. Consult an Attorney should legal advice be necessary.
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