The jobs report made known to the public may have been nothing to joke about, but it certainly got many smiling. Employment statistics have never been better. Jobs in the US increased by more than 200,000, plus, the unemployment rate went down to just 8.8 percent. Since 2009, that figure has never gone down beyond the 9 to 10 percent range. This is one more optimistic sign that suggests the economy is improving. While that's great news for your company, do bear in mind that your top talent may also view this as the perfect opportunity to find other career opportunities.
Smart Employers Will Offer Incentives to Employees
A recent study by WellPoint Research indicated just how important an effective benefits package is to employees. A majority of survey respondents said that they were more likely to stay with an employer who did a good job of communicating the benefits package to employees. As a matter of fact, 6 out of 10 of them said that if that were the case, they would stay with their current employer even if they were lured by others with a higher paycheck. So what's aproactive employer to do? Well, if you don't want to bid your best employees goodbye, then it's time to up your benefits up a notch, and naturally, tell your people about this.
Section 125 POP Plan: Your Key to Keeping Employees
If you want to provide more benefits to employees without spending a lot, then consider a Section 125 POP Plan. It is commonly referred to as a cafeteria plan because is gives participant the opportunity to pick out the benefits most suitable for their needs and pay for these through payroll deduction. The options include health, dental, disability insurance, and others. While the employer doesn't actually spend a dime for the premiums, employees still get to enjoy certain advantages out of the plan because it makes the process more convenient and more importantly, the contributions would be made using pre-tax dollars . So, the deductions for insurance lower the employee's taxable income. With a reduced taxable income, workers' FICA and Medicare taxes will also decrease. Running insurance contributions under a Section 125 Plan therefore, not only ensures better benefits for employees and their dependents, it would also significantly reduce the actual premium amounts compared to insurance paid on their own.
What's makes the deal sweeter is that even employers get something out of it. Because the employee's taxable income is lower, the employer's share of those FICA and Medicare taxes is also reduced. FUTA taxes and state employment taxes are reduced too.
Smart Employers Will Offer Incentives to Employees
A recent study by WellPoint Research indicated just how important an effective benefits package is to employees. A majority of survey respondents said that they were more likely to stay with an employer who did a good job of communicating the benefits package to employees. As a matter of fact, 6 out of 10 of them said that if that were the case, they would stay with their current employer even if they were lured by others with a higher paycheck. So what's aproactive employer to do? Well, if you don't want to bid your best employees goodbye, then it's time to up your benefits up a notch, and naturally, tell your people about this.
Section 125 POP Plan: Your Key to Keeping Employees
If you want to provide more benefits to employees without spending a lot, then consider a Section 125 POP Plan. It is commonly referred to as a cafeteria plan because is gives participant the opportunity to pick out the benefits most suitable for their needs and pay for these through payroll deduction. The options include health, dental, disability insurance, and others. While the employer doesn't actually spend a dime for the premiums, employees still get to enjoy certain advantages out of the plan because it makes the process more convenient and more importantly, the contributions would be made using pre-tax dollars . So, the deductions for insurance lower the employee's taxable income. With a reduced taxable income, workers' FICA and Medicare taxes will also decrease. Running insurance contributions under a Section 125 Plan therefore, not only ensures better benefits for employees and their dependents, it would also significantly reduce the actual premium amounts compared to insurance paid on their own.
What's makes the deal sweeter is that even employers get something out of it. Because the employee's taxable income is lower, the employer's share of those FICA and Medicare taxes is also reduced. FUTA taxes and state employment taxes are reduced too.
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You can get a head start on retaining your top employees in minutes with www.TaxFreePremiums.com. With professional advice and the right tools, your Section 125 Cafeteria Plan can be up and running today!