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The secret to having a comprehensive benefits package

The secret to having an all-inclusive benefits package

As an employer, you want your benefits package to be a one-stop-shop for your employees. Not only will a comprehensive benefits package keep your current employees happy, but it will help you attract new talent. We’re here to let you in on a secret to help you kick your benefits up a notch.

But first, the basics

Before we get to this secret, it’s important to understand what employees are looking for in terms of benefits.

Work-life balance & wellness

According to this study by Gartner, employees now prioritize having a work-life balance over all other benefits offerings. Ensure your PTO package provides adequate time off (vacation and leave), is flexible in nature, and lets them work from home when they need to.

Including additional wellness benefits in your benefits package can help make the work-life balance easier while encouraging a healthier lifestyle. For example, you can subsidize employee gym memberships and other fitness activities with a Specialty Account.

Child care & education-related expenses

Child care costs are skyrocketing. In fact, the Economic Policy Institute calculates child care as one of the biggest expenses families face in nearly every state. It’s even more expensive when that child is an infant. Then, costs range from $5,000 to over $24,000 per year. That’s a LOT. Fortunately, you can make child care more affordable for your employees by offering a Dependent Care FSA.

Child care costs aren’t the only expenses eating at your employees’ paychecks. Student loan debt continues to rise as well, with an average student loan debt of $32,731 and an average payment of $393. By setting up a tuition and/or student loan assistance program, you can reduce that burden.

Retirement planning & life insurance

Help your employees plan for the future, no matter what it might bring.

Offer a retirement plan that matches up to a certain amount to help your employees save for the future. Consider offering an HSA so your employees can save on healthcare expenses in retirement as well.

Additionally, give your employees the assurance that their families will be well taken care of in the event of their unexpected passing. Offer some sort of life insurance that they can sign up for to provide peace of mind.

Medical, dental & vision insurance coverage

Individuals want comprehensive – but affordable – insurance to cover medical costs for themselves and their families. This is easier said than done considering healthcare premiums are expected to rise in the coming years.

Fill in the gaps. Pre-tax health plans like Medical FSAs, HSAs, and HRAs can help your employees cover medical costs that your insurance plans don’t cover. They can be used to cover other health-related expenses as well like acupuncture, glasses, crutches, medical supplies, and over-the-counter drugs and medicines. Find the right solutions based on your needs. 

While these pre-tax accounts are all great on their own, the issue is that they don’t all stack. As in, IRS regulations don’t allow for an employee to sign up for a Medical FSA, HSA, and HRA – at least in their full forms. Now, here comes the secret… 

Expand your benefits package with FSA/HRA variations

By offering variations of the FSA and/or HRA, you can enable employees to sign up for multiple pre-tax health plans. This gives your employees maximum coverage, while passing onto you maximum savings.

The following HSA-compatible variations can be made to FSA and HRA plans:

  • Limited-purpose. This account type is employee-funded and can only be used to pay for dental and vision expenses.
  • Post-deductible. This account type can be used for eligible medical expenses once a minimum deductible has been met.
  • Limited-purpose AND post-deductible. This account type can be used to pay dental and vision expenses immediately. Once a minimum deductible has been met, the account can be used to pay for all other eligible medical expenses.

Who will fund it? If you choose to make one of the above variations a FSA, it will be funded by your employees through payroll deductions. Similarly, if you make one of those variations a HRA, it is your responsibility to fund it.

Remember: Not all of your employees will be eligible for a HSA. To truly have a comprehensive benefits package, you should offer a general Medical FSA in its full capacity in conjunction with your chosen FSA variation. Fortunately, we can handle it all! Reach out to your assigned representative for assistance in plan design.