Use Your Section 125 Plan as a Recruiting Tool
Benefits matter a great deal when it comes to recruiting and retaining quality candidates yet many companies don’t use that to their advantage. They’ll spend a fortune on all their offerings but fail to highlight it in their recruiting material and even worse make it too hard for employees to take advantage of the benefits once they do come on board. Maybe it’s the Affordable Care Act or more of the healthcare costs being passed on to the employees but regardless, workers are ranking a good benefits package as high as a competitive salary.
Save Money and Hire Outstanding Candidates
Fortunately, your company doesn’t have to spend an outrageous amount of money in order to offer a wide variety of benefits that the best employees look for when considering a position. A Section 125 POP Plan, also called a cafeteria plan, allows you to offer a wide range of benefits for virtually no cost. Through these plans, your employees can buy the insurance plans of their choice by having the premiums deducted from their paychecks on a pre-tax basis. That means the employee’s taxable income is lower, and so are their FICA and Medicare taxes. It also means that the employer share of the taxes – the part you pay – is lower, too. Your FUTA taxes will be lower, as well. So, for a very low fee, you can attract the best candidates and reap huge tax savings through a Section 125 POP Plan!
HSAs, or Health Savings Accounts, are a great addition to your Section 125 plan. HSAs are growing in popularity, with some 13.5 million Americans enrolled as of last year. These plans are essentially savings accounts that allow employees to put away money for future health care costs, such as doctor visits, dental care, eye exams, surgery, or prescription drugs. HSA contributions grow tax-free, and there’s no requirement to use it within a certain period of time. Employees like HSAs because they control how the money is spent, and they can spend it on themselves, a spouse, or their kids. These savings plan needs to be offered with an HDHP High Deductible Health Plan but clearly, the trend is growing.
A Fast, Easy Way to Get Started
You can start your Section 125 POP Plan and HSA in just minutes with www.taxfreepremiums.com! We can create customized plan documents, including the HSA module, in as little as 15 minutes. Our documents are IRS-compliant, always on file, and easy to change if you need to. Our experts are available to answer questions and offer support, so you don’t have to worry about missing out on important regulatory changes. All of this is yours for an annual membership of $99!