How To Save Money On Employee Benefits

Posted by Bimbita on January-9-2012 under Save Money

Here are some ways for how to save money on employee benefits. Considerable amount of money can be saved on employee benefits, and this can be done quite easily. Employees are essential for the growth of the company. In order to attract the best talent, the employee benefit package should also be the best in the industry. Here is how expenses can be saved while giving top class employee benefits.

Usage of Flexible Spending Accounts

These accounts can be used by employers to save on tax that they need to pay out. The employee contributions to the fund isn’t taxed by the authorities. If the employers were to make the same contributions, then they would be taxed 7.65%, which is known as FICA on each dollar contributions. Therefore, employees should contribute the maximum amount to enable the employer to save expenses.

Health Incentives

Another way to save on employee benefits. Many health insurance companies offer a variety of incentives that can bring the overall cost of health insurance plan down. The employers who encourage their employees to use such lifestyle choices can help in getting their overall cost down. Employers should motivate their employees to participate in programs that can offer a healthier lifestyle and help the company in reducing the payout for health insurance.

Using Freelance Workers

A way in which many companies downsize on their employee benefits program is by using freelance workers. Independent contractors aren’t officially considered as employees in the company and don’t have a right to the employee benefits that are offered by employers. The employers don’t pay tax or any contribution towards employee benefits for such contractual workers. This can save a considerable amount of dollars for the company in terms of employee benefits.

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