Today’s job seekers have tons of options when it comes to finding a job. This means that employers need to take steps to make their company as attractive as possible to potential employees. One of the best ways to help stack your staff with incredible talent is through benefits.
Regardless of that fact, many employers aren’t offering competitive benefits because they’re worried about the cost of employee benefits. If you’ve found yourself in that boat, then you’ll be happy to know that many benefits you offer your employees are tax-exempt! Read on to learn all about them.
Tax-Exempt Benefits
A large number of traditional benefits that businesses offer are actually tax-exempt. That means that they reduce your overall tax liability at the end of the year. More money in the company’s pocket translates to a healthier business!
One of the most important benefits an employer can offer is health insurance. Health insurance is a prime example of tax-free compensation, but it’s not the only thing. You can also offer your employees dependent care assistance up to $5,000 per year; education assistance up to $5,250 per year; and group term life insurance up to $50,000.
Want to bring someone in from out of state? You can offer moving reimbursements and get a tax exemption for any expenses that are tax-deductible.
Non-Exempt Benefits
Many employers also offer benefits that aren’t tax-deductible to further entice quality employees. Some many be tax-deductible, but still be subject to Social Security and Medicare taxes (FICA).
One of the most common forms of non-exempt benefits employers offer is assistance with the adoption process. Employers can offer up to $13,570 per year in assistance to employees tax-free. However, that assistance is still subject to FICA.
Find the Balance
In order to attract the best employees, then it’s important to leverage the tax savings on exempt benefits to help create a generous compensation package. For example, use the tax savings to offer your new employees a sign-on bonus or a performance bonus. Leverage tax savings to create an on-site gym so your employees can get fit while waiting for traffic to die down.
There are many ways you can balance out your benefits to make your company attractive! You just need to sit down and crunch the numbers.
The Cost of Employee Benefits Is Worth It!
Many executives and business owners find themselves losing out on fantastic talent because they’re worried about the cost of employee benefits. By offering benefits that give you major tax savings, you’ll have more room in your operating budget to pay for additional benefits or boost employee salaries. Before you know it, all of the top talent will be knocking on your door for a job.
Are you interested in learning more about getting benefits to your employees? We can help you with that. Contact D2E Health Plans today to learn all about the benefits we offer.