Benefits for Your Employees and Your Business

August 23, 2022 | posted by Abacus Payroll

When you hear “employee benefits,” you probably think of things like 401(k)s and Paid Time Off; things that benefit employees in a business. However, employee benefits actually benefit the business and the employer too.

Here are some possible employee benefits and offering them effectively can simultaneously benefit your business.

Common Employee Benefits

Traditional or Roth 401(k)

The traditional 401(k) plan lets employees put away a portion of their paycheck towards retirement. They will not be taxes on these contributions until they reach retirement age and take the money out. The Roth 401(k) also lets employees put away a portion of their paycheck towards retirement, but it is taxed when the money is taken out of their paycheck. This way, employees won’t be taxed when they retire and have to withdraw from their account.

How It Helps Your Business:

Employees contributing to their 401(k) can actually save you money. Employers can deduct contributions on the company’s federal income tax return to the extent that the contributions don’t exceed certain limitations. Employers can match an employee’s retirement plan contribution. This helps your employees save for retirement and shows that you genuinely care about their future. Now that states are moving towards mandated retirement programs, having a custom and flexible plan can set you above your competition when it comes to recruiting and retaining employees.

Paid Time Off

Many employers are introducing Paid Time Off (PTO) plans that encompass sick days, personal days, and vacation days. Some are even deemed unlimited. This general category of time off allows employees more flexibility when it comes to how they are using their days off.

How It Helps Your Business:

When given flexible time off, employees are more incentivized to not lie about being sick. The overall company culture becomes more transparent and trust is further developed between employer and employees. This trust and the flexibility of the time off is something that employees value and will certainly evaluate and appreciate when choosing a place of employment.

Paid Family Leave

Allowing your employees to have access to paid family leave gives them the opportunity to take necessary time off without it impacting their paycheck. These types of plans cover lengthy illnesses and other personal life events that may occur while being employed. While there are state and federal leave options (often unpaid, but provides job security), you can consider having more custom Paid Family Leave policies at your company as well.

How It Helps Your Business:

When your employees are dealing with personal issues, it tends to cause them to be distracted and burnt out. This limits their productivity and contributes to a negative workplace environment. Paid family leave allows employees to take the time that they need to heal, rest, or handle personal issues or events without the stress of their income or pressure from work deadlines. This tends to cause employees to have an easier time returning to work when they are truly ready.

Some states, such as New Jersey, California, and Massachusetts offer paid maternity leave, so it’s important to know what your state is (or is not) offering when composing your own policy and terms.

Insurance Packages

Health, medical, dental, and vision insurance are typically provided by employers to employees that would cover part or all of the risk of an employee incurring medical expenses. Some companies consider offering more extension insurance perks, such as life, disability — and even pet insurance.

How It Helps Your Business:

Health insurance is a primary concern for many employees when looking for a job. Offering attractive and affordable health insurance packages to your employees can provide peace of mind and help increase employee job satisfaction and longevity.

Look at Your Own Culture and Core Values

There are more to benefits that an employer can offer other than the traditional insurance and time off. Basic benefits can contribute to the overall company culture. For example:

Office Food – When expecting your employees to be in-person in he office full-time, it is important to acknowledge their needs. For example, full-time in-person staff will be in the office for at least one meal a day. Being aware of this and providing your staff with meal and snack options throughout the day can be a seemingly small way to make a large difference in your employees’ daily routine.
Dress Code – Overall productivity can improve drastically based on how comfortable your employees are in their work space. In the new work age that we are living in, office dress codes have become increasingly more relaxed. Providing your employees with different flexible dress code options can increase their overall experience and productivity.
Happy Hours/Social Events – A big part of company culture relies on how your staff interacts with one another. During work hours, it can be difficult to connect and really get to know one another. Providing happy hours and other kinds of social events throughout the year can create bonds between your employees that can strengthen your work environment.
Pets/Pet Insurance – One of the biggest parts of being a good employer is understanding that your staff is human and has human needs and responsibilities outside of the workplace. Many members of your staff will have pets that contribute to their overall well-being in their personal life. Providing pet insurance options can be a strong draw for people to work for you. Knowing that you care about your employees and their needs, creates a well-respected work environment. Similarly, these pets can contribute to the workspace. Many offices are allowing pets to come in with their owners during the work week and it has proven benefits overall.

If you want to learn more about benefits for your employees and your business, contact an Abacus Payroll advisor today!

Sign up for the HR Help Center for More Resources:

How Paid Family Leave and Related Programs Can Help Your Business
401(k) Basics
Is it Vacation or Paid Time Off?
Benefits Enrollment Spreadsheet
Health Insurance Notice Checklist
FMLA Administration Procedure Guide

Additional Reading:

About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.