When It’s Time To Consider Employee Benefits Options For Your Sacramento Business
Taxes and employee turn-overs are expensive, BUT there are ways to reduce both!
It is critical to take some time to consider if and which employee benefits options can have a positive engagement and financial impact within your company in the Greater Sacramento area. Taxes and employee turn-over are expensive, there are ways to reduce both! There are some great options when looking to extend employee benefits to your staff. Most are not expensive and some have great tax advantages. Often employee benefits can persuade an employee to stay or seek employment elsewhere.
Premium Only Plan (POP) For Pretax Premium Deduction Through Payroll
This will likely become more apparent as millennials make up the majority of the workforce today and this summer we will begin to see Generation Z make its professional appearance. These generations are looking for a position that 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 pretax premium deduction through payroll.
These plans are straightforward, require little effort are provided at very little cost and can provide significant tax savings to both the employer and employee. If you do not have a POP and have premium deductions in payroll, put this on the top of the list.
Which Retirement Savings Option Is Best For Your Business: IRA or 401K? Edit: Employers with 5+ employees are required to offer a retirement savings plan by June 30, 2022.
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, 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 see an impact on taxes as well. Offering employees benefits, such as time off to volunteer, can allow an employee to fulfill a desire to contribute and support what is important to them.
What’s the Benefit of Offering Virtual Work Or Telecommuting Options To Employees
The employer gets to set parameters around such employee benefits which are not mandated; you choose the amount of time and frequency. You can require documentation to confirm attendance. Virtual work or telecommuting trends are continuing the same upward trajectory in the Sacramento and Folsom area. And if telecommuting is 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. Most 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 that 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%! Employers are getting creative today to help retain and engage employees. When in doubt of what would impact your staff, just ask them!
People Rock HR Services can prepare a survey if you feel it is needed.
Some employee benefits employers offer:
- Section 125, Flexible Spending Accounts and Dependent Care Accounts
- Retirement Plan
- Flexible schedule
- Teleworking options
- Group life insurance and disability employee benefits
- Paid time off including volunteer time, family/friend days, etc.
- Pre-tax commuter employee benefits
- Casual, safe, and comfortable work environment
- In house bicycle; available for employees to use during breaks
- A stock of healthy snacks and drinks
People Rock HR Services Can Connect To Brokers and Advisors For Customized Employee Benefits Options
Let’s discuss and get you connected with some great brokers and advisors to explore specific options. Your CPA can be a great resource as well. There are many options to explore for tax savings and employee benefits. Take some time to explore and consider the impact, you will be glad you did!
Consult your Financial Advisor, Broker, and CPA before making any decisions.