5 Ways business owners can save money on employee benefits - Baltimore Post-ExaminerBaltimore Post-Examiner

5 Ways business owners can save money on employee benefits

Are you one of the employers who leaves money on the table when it comes time to select the benefits packages for your esteemed employees? Perhaps you don’t know that there is particular software that automates a lot of areas that require manual labour and elbow grease. Save yourself time and effort by purchasing quality business administration software. Here are several reasons why considering one may prove extremely beneficial to your business in the long run.

1. Identify Issues

In order for the Benefits Administration to properly select the right type of benefits for employees, you (as employer) must identify which benefits your workers actually want. Figuring this out serves two purposes: 1) You don’t want to pay for something that won’t cover your workers’ health, and 2) Your teams will feel neglected because you assumed what they were looking for. So have conversations with your workers, or conduct employee surveys if you must. Ask them questions such as:

“How much can you personally afford to pay out of pocket each month?”

“How many dependants do you foresee enrolling?”

“Which health needs have you experienced thus far?”

2. Utilize Technology

Luckily for yourself and your H.R. department, benefits administration software takes care most of the “grunt work” when it comes to selecting benefits packages. This is because intuitive solutions often enroll new employees easily, with the least amount of stress possible. The right software for you may also let employees service themselves. Since they can access their own information, they can ensure any entries are correct – alleviating the hassle and data entry strain on your HR department.

3. 529

Employers who use payroll deduction 529 plans are wise to take advantage of the tax incentives these plans offer. Contributions to this account accumulate, over time, and are often tax free. This plan is especially attractive to employees who are parents, as well, as their children can use the funds allocated within the account to pay for college. (Such as withdrawing money for the account for qualified expenses like room and board and intuition.) Special software will easily keep track of expenditures revolving around this account, as well as any contributions.

4. Remote Accessibility

Aside from being able to manage data (on the go) from anywhere in the world, thanks to cloud-based software, payroll taxes and the system can be accessed in a breeze. This is why the importance of employee benefits cannot be overstated.

5. Direct Deposit

If you don’t know by now, electronic paychecks (aka “direct deposit”) to your employees cuts down on the time, resources and money necessary to hand them their paychecks. It makes lives a lot more easier, according to the Electronic Payments Association (NACHA). Not just for the employees, but for the company as well, as each paper check costs the company $3.15 per payment. (For example, if your company has 20 employees, switching to direct deposit saves your company $63 on payday. And if your company has 100 employees you save over $18,000 per year.) Benefits programs that offer direct deposit have always shown to benefit everyone within the company.

Conclusion

Having satisfied employees and saving money doesn’t mean you have to decide between one or the other. Remember: the best software that you choose depends on how many employees you wish to retain. The only way to do that is to find the employees who share your vision of the business – and do everything you can to ensure they remain a valuable part of your business.


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