Best Tax-Free Employee Benefits

Certain benefits can boost morale, improve retention, and help to keep your employees satisfied, all while being able to save money on payroll taxes. Below are some of the best tax-free employee benefits available to employers today.

1. Offering Health Insurance

Health insurance is one of the most common and appreciated tax-free benefits within the workplace. When an employer pays part or all of an employee’s health insurance premiums, those contributions are not considered taxable income for the employee. This also can typically include dental and vision insurance, which can make the overall benefit package more worthwhile. There are also cases where employers can save on their taxes as well when they offer these plans.

2. Setting Up Retirement Plans

Offering a retirement plan, like a 401k, often is a tax-free contribution from your employer. Employees can contribute pre-tax dollars to their accounts, and employers can match a portion of what you have contributed to it. This is all done tax-free. This not only helps employees plan for the future, but it also shows that you are invested in the lives of your employees. You can set your company apart by offering a retirement plan as a strong incentive.

3. Health Savings Account Contributions

Some employers offer a high-deductible health plan, and it can be a smart, tax-free move to pair that with a Health Savings Account (HSA). When your employer contributes financially to your HSAs, it is tax-free and can be used by you to pay for many types of medical expenses that qualify. Any unused HSA funds typically roll over year to year, and they can even stay with the employee even if they leave the company. This offer is valuable and offers a lot of flexibility as well.

4. Furthering Education

Helping your employees further their education can also be a tax-free perk. Employers can offer a certain amount in education assistance without it being taxed as income. This money can go towards things like tuition, books, or further training. This is typically used for furthering your education to help support the role that you are currently in or to achieve growth within the company. This can help to keep your employees invested and motivated in their own education as it helps to support the company and experience they are working towards.

Structuring Your Benefits with Cooper Norman

While these benefits can save both time and money, it is important to set them up correctly to make sure they qualify as tax-free. Our accountants at Cooper Norman are well-versed in tax-free employee benefits and can help your company structure its benefits in the best way possible.

We work with business owners to create smart benefit plans that follow all of the tax rules while also supporting your company’s goals. You might be adding new benefits or improving your current ones, but either way, they can help make sure everything is set up right and stays as cost-effective as possible.

Offering Top-Notch Support to Your Team

Having tax-free benefits is not just good for your employees, it can be a smart choice for your business too. Offering these kinds of benefits shows your team you care and can make a real difference when it comes to hiring great people while managing all of the costs. If you would like to explore your tax-free employee benefit options, we at Cooper Norman can help guide you through the process. Get in touch with us today.