What’s disappointing is that most employees have no idea how much the company pays on their behalf. That’s why you should consider preparing a personalized statement for each employee, showing the value of their company-provided fringe benefits.
Although it may sound complicated, your accountant or bookkeeper should be able to produce the numbers quickly and easily.
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Begin with premiums you pay for health, life, and
disability insurance. Include costs you pay for any other benefits, such as
parking or transit passes.
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Add in any dollars you contribute for the employer
match in your 401(k) plan. Or if you offer a profit sharing plan, include
those contributions.
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Include the company’s share of Medicare and social
security taxes paid for each employee. Employees would have to pay that
themselves if they were self-employed. You can also include costs for unemployment
and workers' compensation insurance if you want to be really precise.
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Conclude
the statement by listing the hours of paid vacation or sick leave that you
grant.
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Don’t overlook low-cost ways to boost your existing benefits. If you’re in an urban area, consider offering free transit passes. You may get a special deal from your local transit authority, and the benefit will appeal especially to your lower-wage employees. Even better, consider offering no-cost benefits such as flex-time. If it works with your business, consider half-day Fridays in the summer months, with slightly longer hours on other weekdays. Employees will love arrangements that simplify their lives or give them longer weekends.
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