Today’s job market is highly competitive! Employers seeking to attract and retain top talent simply must be creative and offer the most attractive benefits package. Sure, on-site fitness centers and childcare are great, but not always practical. In fact, according to the 2020 MetLife Workforce Report, the benefits that employees consider as must-haves are Health, Dental, Vision and Life insurance.
So why should businesses offer voluntary benefits?
- Tax advantages. Employers who take advantage of Section 125 of the IRS Code (Cafeteria Plan) help lower an employer’s FICA contributions by allowing employees to use pre-tax dollars for ancillary benefits. That creates a savings for the employer and the employees.
- Attract and retain top talent. By offering voluntary benefits to employees, a business will be more likely to attract – and keep – quality employees who appreciate the value of these benefits. These are often the employees who desire a career over a job.
- No required cost to the employer! Employers do not have to pay for voluntary benefits in order to offer them. However, they can choose to fund a portion in an effort to satisfy the employee’s desire for additional coverage without breaking the bank. This is often ideal for Small Business owners.
- Fills in the gaps limited benefits packages. Voluntary products like Dental, Vision, Disability, Accident, Hospital Indemnity and Critical Illness plans are not included in general health insurance packages, so employees either need to pay for these services out of pocket or find their own insurance providers.
- Protects employees' income. Some Voluntary products put money back into the policyholder's pocket. Therefore, protecting their income to assist in maintaining their lifestyle in the event of the unexpected illness or injury.
If you want to learn more about creating an employee benefits strategy suitable to your business contact American Trustee of Florida. We work with businesses of all sizes. 321-345-1586.