Can Offering Employee Benefits Actually Save Employers Money?

For many employers, controlling costs is a top priority. It is a constant struggle to keep employees happy and increase their engagement, all without overspending to achieve those goals. With that in mind, what is the right approach? As a third-party administrator, with decades of experience, we want to take this opportunity to share how improving your benefits package could lead to savings. Let’s dive in.

Tax Savings

Did you know that employers save on payroll taxes for every dollar their employees elect toward certain benefit accounts?  Tax-advantaged benefits allow employers to save 7.65% on the amount participants put toward their accounts. Examples include Flexible Spending Accounts, Health Savings Accounts, and Dependent Care Accounts, to name a few. But non-healthcare accounts can have similar payroll tax savings too, like Home Office Reimbursement Accounts! Offering these accounts help employees save on things they need, while reducing the employer’s payroll taxes.

Reduce Turnover

It is much more expensive to replace an employee than to keep an existing employee. Some estimates suggest that hiring a new employee could cost, “…three to four times the position’s salary.” That means it is extremely important to emphasize retaining existing employees. Expanding your benefits package is a great way to do that. Addressing the needs of your employees, from saving on healthcare costs to Fringe Accounts like Pet Care Reimbursement and Home Office Reimbursement, could prove to be a huge money saver over time!

Employee Wellness

Emphasis on wellness can help reduce an employer’s healthcare costs. Providing employees with wellness support can support their overall health, which can lead to lower health insurance premiums and a more engaged workforce. BASIC offers highly customizable Wellness Plans to achieve goals set by the employer and can be tailored to their unique culture.