As Job Prospects Increase, Make Sure Your Employees Aren’t Looking Elsewhere
The jobs report made known to the public may have been nothing to joke about, but it certainly got many smiling. Employment statistics have never been better. Jobs in the US increased by more than 200,000, plus, the unemployment rate went down to just 8.8 percent. Since 2009, that figure has never gone down beyond the 9 to 10 percent range. This is one more optimistic sign that suggests the economy is improving. While that's great news for your company, do bear in mind that your top talent may also view this as the perfect opportunity to find other career opportunities.
Smart Employers Will Offer Incentives to Employees
A recent study by WellPoint Research indicated just how important a good benefits package is to employees. Most of those who answered the survey said that an employer who offered a good benefits package which was clearly explained to them would earn their loyalty. In fact, 60% said that they would stay in the same job, even if offered more money to work somewhere else. So what's aproactive employer to do? Well, if you don't want to bid your best employees goodbye, then it's time to up your benefits up a notch, and naturally, tell your people about this.
Section 125 POP Plans: A Low-Cost Retention Tool
A low-cost way to offer more benefits to your workers is the Section 125 Premium-Only or POP Plan. It is commonly known as a cafeteria plan because is gives participant the opportunity to pick out the benefits most suitable for their needs and pay for these through payroll deduction. The options include health, dental, disability insurance, and others. While the employer doesn't actually spend a dime for the premiums, employees still get to enjoy certain advantages from the plan because it makes the process more convenient and more importantly, the contributions would be made using pre-tax dollars . So, the deductions for insurance lower the employee's taxable income. That in turn, lowers the employee's share of FICA and Medicare taxes. The employees not only get access to useful benefits for themselves and their families, they also get to pay lower premiums than what these would have been had the insurance been purchased outside a Section 125 Plan.
The employer gets a benefit, too. Because the employee's taxable income is lower, the employer's share of those FICA and Medicare taxes is also reduced. FUTA taxes and state employment taxes are reduced too.
You can get a head start on retaining your top employees right now with www.TaxFreePremiums.com. With sound advice and the necessary tools, your Section 125 Cafeteria Plan can be up and running today!
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