Employee benefits are vital in keeping your employees around, happy and loyal. These can include many things, from having extra days off, providing workplace perks, to complex retirement packages. Regardless of what benefits you offer, they are important in making your employees happy. If you are tired of going through volumes of employees and wish to keep the good ones, then offering them financial benefits in the form of retirement packages, is surely something you need to take a look at. And you’ll be surprised at how inexpensive these could be. Plus, they can make you eligible for some interesting tax deductions and credits.
Prime Motivation for Employee Benefits
There are several motivating factors behind employee benefits. Since we are experts in the financial industry we will not focus on child care, gyms, or other employee perks. Let’s take a look at the financial reasons and motives for benefits.
The one thing way too many people are struggling with most of their lives is money management. For most it is a problem just to create a rainy day fund to cover 3 months of expenses. When you give them the opportunity to save money for retirement without having to think about it, they will thank you for it. There are many instruments you can use. We’ve already described one of them here on our site, the Defined Benefit Plan.
Health insurance is a long term pain in the US. Getting it individually is very expensive. If you offer health insurance to your employees in their benefits package, it will make you a more attractive employer. On one side you can deduct the premiums on your taxes as ordinary business expense. And on the other side your employees will receive a more affordable group health coverage.
This is another aspect, which can offer you tax deductions. It will make your employees more loyal and provide them with security in their life. In some cases your employees may not be able to obtain life insurance individually. Reason could be financial or possibly they may have an issue with insurability. Underwriting tends to be more lenient in group policies.
In other words, The Supplemental Executive Retirement Plan. You can use this plan to achieve greater loyalty of your executives. It is a plan, which rewards your top executives with a whole life policy, which is tax deductible to you, the employer. It is a great way to keep your head of a project on board for a set period of time, e.g, 10 years. We discuss this type of a plan in another article on our website here.
Let’s Get You Started
If any of these ideas caught your interest, and you have some more questions, then don’t hesitate to reach out to us now. You can start by filling out the form below. We’ll get back to you ASAP and schedule a free consultation with no obligations.