Flexible Spending Accounts/Premium Only Plans
Save money…all of your employees would probably agree that this phrase is a big priority in their household. As an employer, you have the ability to assist them in that endeavor—while benefiting the company as well!
Premium Only Plans:
Section 125 Premium Only Plans allow employee payroll deductions for most group health, dental, vision, and life insurance premiums to be taken before FICA/Med, SDI, federal and state income taxes. By participating, your employees can save approximately 25% of the amount they spend on these premiums. Implementation of a Section 125 Plan can create a true win-win scenario for your company. With minimal employee participation, your company can offer a significant employee benefit that is paid for through reduced company payroll taxes and workers' compensation premiums.
Flexible Spending Accounts:
A Flexible Spending Account (also called an FSA) offers a way to save money for qualified expenses: Your employees voluntarily direct a part of their pay into a special, tax-free account that they can use to reimburse themselves for eligible out-of-pocket health care and dependent care and transportation expenses. There are benefits to the employer and the employee with an FSA:
Employer Perspective:
- Decreased employee taxable income, as a result of contributions to reimbursement accounts, results in decreased expenditures for FICA, unemployment insurance, workers' compensation and other wage-based benefits.
- The cost for administration is typically offset by the savings on payroll taxes.
- Interest is earned on account balances.
Employee’s Perspective:
- Reduced taxable income means employees reduce their federal, FICA and, frequently, state taxes. Because an FSA reduces adjusted gross income, it may make an employee eligible for other valuable tax benefits.
- Employees can be reimbursed with pre-tax dollars for out-of-pocket deductibles, co-pays and procedures that are not covered by their health care insurance (if they have coverage).
- For many taxpayers, FSAs are the only way to get a tax break for medical expenses. That's because medical expenses are only deductible to the extent they exceed 7.5 percent of adjusted gross income.
- Contributing pre-tax dollars to their FSAs provides employees with more spendable income.
To learn more about these plans and how they can benefit your employees and employers
Voluntary/Worksite Benefits
What does an employer do when the budget is too tight to offer all of the benefits they believe their employees deserve access to?
Offer voluntary/worksite products! At McManamon Insurance we can work with businesses to help supplement core benefits already being provided by the employer while educating employees on the total value of their current benefits package.
More and more business owners are considering voluntary/worksite benefits because they can help contain benefit costs while offering quality benefits to their employees. Since voluntary benefits are paid using payroll deductions and are chosen at will by the employee, there is no additional cost to employers. These benefits can help attract and retain high-quality employees while controlling the rising cost of providing employee benefits. McManamon Insurance partners with top-rated companies in this field that have proven to effectively explain, educate and communicate the benefits that would be available to your employees on a voluntary basis. Some of the supplemental benefits available are:
- Accident
- Cancer/Specified Disease
- Critical Illness
- Long-Term Care
- Voluntary Disability
- Voluntary Life Insurance
- Voluntary Dental Insurance
For a free consultation on the above services, please click here.
Wellness Programs
It's no longer a matter of speculation. For over a decade, research has been showing the consistent effectiveness and tangible benefits of workplace wellness programs.
Companies in various industries nationwide report saving millions of dollars due to corporate wellness programs. According to a study published by the American Journal of Health Promotions, for every $1 spent on wellness programs, employers can expect a return of $2.30 to $10.10 through lower medical claims, reduced absenteeism, improved productivity and other factors affecting their bottom line. A workplace wellness program can have many benefits for both employers and workers. By providing wellness programs employers can help employees to understand their current health status and how to reduce health risks. Workplace wellness programs provide access, opportunity and the encouragement workers need to actively participate in improving their own health.
In addition, a workplace wellness program can provide significant benefits for the company as well. Healthy employees experience increased job satisfaction, fewer absences and increased productivity. McManamon Insurance can help you customize a wellness program/strategy to fit the needs of your audience. Please contact us for more information on how we can help you get started by clicking here.