Over the last few months, I've read numerous articles on revamping employee benefits perks, especially in regards to "Work-from-Home Employee Perks." That said I've yet to read anything on two of the most important benefits that your employees will use and appreciate.
Dependent Day Care:
Child and dependent care is a critical issue and a large expense for many American families. Millions of people rely on child care to be able to work, while others are responsible for older parents or disabled family members.
How Dependent Care FSA Works
Dependent care FSAs are set up through your workplace. Participants authorize their employers to withhold a specified amount from their paychecks each pay period and deposit the money in an account. For an Employer to get the most perceived value in the eyes of the employee the Employers should also make a generous contribution to an employee's dependent care account. Especially given the fact most employees have kids at home and having pre-tax dollars available to cover childcare cost is a HUGE benefit.
Did I mention funds are PRE-TAX, this is a powerful concept many employers and employees forget. For someone in the 24% federal tax bracket, this income reduction means saving $280 in federal taxes for every $1,000 spent on dependent care with an FSA.
Using a Dependent Care FSA
The IRS limits the total amount of money you can contribute to a dependent care to $5,000 each year for married couples filing jointly, unmarried couples and single individuals and $2,500 if you are married and filing separately.
· Dependent care FSAs are only available to workers who have employers who offer them.
· Employers can make a contribution to the dependent care FSA on behalf of the employee.
· Employees can withhold agreed amounts from their paychecks to fund their FSA accounts.
· If you are divorced only the custodial parent may use a dependent care FSA.
· The most money in 2020 you can stash inside of a dependent care FSA is $5000.
· FSA contributions cannot be returned in cash. If you don't use the funds within a specified time frame, you lose those contributions
Exercise Equipment Allowance:
The second employee benefits perk every employer should consider is offering is an "Exercise Equipment Allowance." With most gyms closed and individuals reluctant to go to the gym, employees are looking for ways to stay healthy at home. From a treadmill to an elliptical machine employees want to stay in-shape and active. This has a positive effect on the employee and the employer as the employee is more productive and focused on the job. It is also a HUGE plus when employees stay healthy in controlling your medical plan costs. Healthy employees utilize less healthcare and medication than their unhealthy constituents.
So what are you waiting for? Why not implement an Exercise Equipment Allowance program for your employees improving your employee's engagement and improving your bottom-line by keeping your employees healthy and keeping your healthcare costs down.
For more fantastic ideas that work and keep your "Rock Star" employees engaged and loyal call or visit Blackrock Benefits today. www.BlackrockBenefits.com