Know Your Options to Minimize Costs for Employee Benefits
Employer-sponsored health care benefit costs are now approaching $15,000 per employee this year. Broken down even further, the Bureau of Labor Statistics reported that overall employee benefits cost $11.41 on average per hour worked. With such high benefit costs, employers are searching for new ways to lower those costs and find cost-effective solutions that work for both the company and its employees.
Know Your Options for Employee Benefits and Combine them for Savings
Certain employee benefits are mandatory for employers to provide. The Family Medical Leave Act, the Affordable Care Act of 2010, and contributions to Social Security and Medicare are all mandatory regulations dealing with benefits that employers must follow by law depending on the size of the company. Other benefits, however, are optional and can help you cut down on costs.
Striking a balance between maintaining low turnover rates and saving money on benefits is key. There are more affordable healthcare benefit options for employers to offer that can result in tax savings while helping retain employees. Options include self-funding, level funding, high deductible plans, health reimbursement arrangements (HRAs), and flexible spending accounts (FSAs). At Employer Support Services for example, we may advise an eligible company to replace a PPO plan with a High Deductible Health Plan and combine it with an HRA and/or HSA. This combination allows employers to minimize the increasing health care premium costs that are attached to traditional healthcare plans while also ensuring employees are covered for medical expenses.
Employer Support Services can assist many companies in lowering benefits costs while working with the current broker to find the best options for your employees. Making the multiple options of healthcare benefits work together seamlessly can be time consuming and research intensive. Talk to one of our professionals today and learn how you can begin minimizing costs and maximizing employee benefits by taking advantage of these additional plans.
Know Your Tax Saving Options
In addition to benefit cost-saving opportunities, as a business owner, you can also take advantage of some benefit and tax-saving options such as the ones listed below.
- HSAs- or Health Savings Accounts are a type of savings account that allows a person to set aside money that is not taxed and put it toward qualified medical expenses. It must be paired with a High Deductible Health Plan, but it can help lower your overall health care costs.
- HRAs – a Health Reimbursement Account is funded by the employer and allows employees to get reimbursement for qualified medical expenses not covered by insurance. This plan is tax deductible for the employer.
- FSAs – a Flexible Spending Account is an account that a person pays into on a regular basis and uses to pay for health care costs that are considered “out of pocket.” This money is non-taxable income.
- 401ks – a retirement savings plan that is sponsored by an employer. It allows money to be saved by not taxing on the amount within the account until it is withdrawn.
- Work Opportunity Tax Credit – is a Federal tax credit that employers can take advantage of for hiring specified individuals who have faced employment barriers.
If you are experiencing high benefit costs at your company, call Employer Support Services today. We can help you take advantage of many benefit cost-saving opportunities that will minimize your costs and maximize your benefits.