National Employee Benefits Day is celebrated on April 6th. This day is dedicated to recognizing employers’ hard work and dedication that provide valuable benefits to their employees. This year, we celebrate this event amid uncertain times, where the need for good employee benefits has become more critical than ever before. In honor of National Employee Benefits Day, here are some of the often overlooked benefit options employers can use to “sweeten the pot” to attract new talent and retain existing talent. These eight benefits provide an opportunity for over $30,000 of increased value to employees each year.*
Achievement awards
Tax Treatment: Tax exempt for employees and employers
Value: Up to $1,600 for qualified plan awards and $400 for non qualified awards
Adoption assistance
Tax Treatment: Not included in income tax withholding, subject to social security and Medicare for employees and employer payroll taxes
Value: Up to $15,950 for 2023
Athletic facilities
Tax Treatment: Exempt if facility and benefit is almost solely used by employees, their spouses and their dependent children
Value: Encourages wellness and can lead to increased job satisfaction and productivity (Assumed value of $50 – $150 per month for comparable services or membership fees)
Dependent care assistance
Tax Treatment: Tax exempt up to limits for employees and employers
Value: Up to $5,000 annually ($2,500 if married filing jointly)
Educational assistance / tuition reduction
Tax Treatment: Tax exempt to limits
Value: Up to $5,250 of benefits each year
Group-term life insurance coverage
Tax Treatment: Tax exempt for employees and employers
Value: Up to cost of $50,000 of coverage
Health Savings Accounts (HSAs)
Tax Treatment: Tax exempt for qualified individuals up to HSA Contribution Limits
Value: For 2023, the HSA contribution limits were $3,850 for individual coverage and $7,750 for family coverage, with an additional catch-up contribution of $1,000 for those 55 or older
Transportation (Commuting) benefits
Tax Treatment: Tax exempt for employees and employers
Value: For 2023, up to $300/month for Mass Transit and Parking Accounts
Bonus Benefit!
Don’t forget about Specialty Accounts (Lifestyle Accounts)! These personalized benefits have become increasingly popular in the workplace. They provide employers with incredible options to customize their benefits plans to suit their unique needs and budgets. Companies are also seeing the impact these customizable benefits can have on employee happiness and job satisfaction, which is leading to a trend toward offering more of these kinds of programs. For example, lifestyle accounts or specialty accounts might include visas to cover travel costs, gym memberships to promote health and wellness, tuition reimbursement for continued learning, or even subscriptions to streaming services for entertainment. With all these options, employers can create truly unique packages that reflect the specific interests of each individual employee—resulting in a happier and more content workforce across the board… and you can’t put a price on happiness!
Let’s Celebrate
National Employee Benefits Day is an essential day that calls for employers and employees to take a moment and reflect on the significance of employee benefits. It is crucial for employers to offer benefits programs that align with employees’ changing needs, while employees must take an active role in learning about and utilizing their benefits. As we observe National Employee Benefits Day, let us recommit to creating positive and supportive work environments that enable employees to thrive!
* For specific details, limits and conditions that may exist for offering and receiving these benefits, please refer to IRS Publication 15-B: Employer Fringe Benefits Guide. All information is intended to provide representative values of benefits and may not reflect the specific values or conditions available through each employer.
