Whenever an employer is considering offering benefits, whether traditional or flexible, they’ll need to look at the pros and cons of each to decide which plan to choose. Providing benefits is a good idea for most employers if they want to attract and retain the newest, brightest talent. Millennials aren’t kids anymore. Few consider anyone born past 1997 to be a millennial, and that means even the youngest millennials have already turned 20. This generation has grown up in a time shaped by economic crisis after recession, and many of them are less concerned about their overall paycheck as they are in stability and benefits.
Tax Savings are a favourite among employees with flexible benefits. During payroll, a deduction is made from each employee’s income before taxes. The money deducted goes into a specific benefits account that they can then use to pay for medical services. And, because the health benefits money is deducted before taxes are applied, they won’t be taxed on the money going into their health account, and thus they’ll pay less tax overall.
Traditional health plans are usually quite rigid. They specify exactly how much money can be used on precise services, with no wiggle room to have your eyeglasses fully covered because you never get cavities. That’s not the way flexible benefits work. Instead, your account slowly grows as money is deducted from each paycheck. That money can then be accessed to pay for all or some of any medical treatments. As long as you don’t go over budget, you can use the money for any medical service from physiotherapy to dental to whatever.
Another beloved perk of flexible benefits is that employees get to decide the specific amount of premium dollars they’re going to allocate to benefits each year. They can adjust this as necessary, and any unspent money stays in the account and gets carried over to next year’s budget.
Employee flexible benefits are a great option. This is especially true for Canadian employers who have a large team with diverse needs. Flexible benefits will mean that all members of your team have access to a useful benefits plan that meets their needs and wants. To learn more about how flexible benefits can help your employees contact Health Risk today.