I think for most employers, the answer would be a resounding – Yes!
Well you can – they are called voluntary benefits and, as an employer, you can offer these employee paid benefits at a savings to your employees by providing them on a group basis.
Not only do you give them access to valuable benefits, there are tax benefits as well:
- Some policies qualify for premiums to be deducted from the employee’s pay before taxes
- As the employer, you may save portions of the employees’ FICA and other payroll taxes for some policies, also lowering the cost of Worker’s compensation
Although tax breaks are great – happy employees will also save you money in the long run.
Happy employees generally:
- Work harder and are more productive.
- They can grow company value – they talk about where they work and you want to make sure they are saying good things about your company.
- Are healthier resulting in lower costs in lost productivity from being sick and out of the office.
That is not to mention your employee retention rate. Happy employees stay with their employer longer, reducing the cost of hiring and training new employees.
So what are voluntary benefits?
Voluntary benefits are supplemental insurance policies that you, as the employer, offer on a group basis to your employees. Because they are offered on a group basis, they generally are less expensive than if they employee purchased them on their own. They are voluntary and paid for by the employees and can provide benefits for themselves as well as their family.
Supplemental benefits can include:
- Out-of-Pocket Medical Expense (GAP) and Hospital Indemnity
- Accident Insurance
- Critical Illness Insurance
- Short-term Disability
- Cancer Insurance
- Life Insurance
Voluntary benefits are becoming popular with most employers as they try to counter balance higher cost health insurance plans. Make sure you are staying competitive and avoid an increased cost of employee turnover.
Take care of your employees and they will take care of you.